By Ellen Zhang, Joe Cash, and Ethan Wang
BEIJING (Reuters) – China’s exports accelerated in December, with imports rebounding as the country closed out the year on a positive note amidst escalating trade risks with the incoming U.S. administration.
U.S. President-elect Donald Trump, poised to assume office next week, has put forth significant tariffs targeting Chinese goods, sparking concerns of a potential trade dispute between the two global powers.
Meanwhile, unresolved trade disagreements with the European Union regarding tariffs as high as 45.3% on Chinese electric vehicles pose a threat to China’s aspirations for expanding its automotive exports.
“Trade frontloading became increasingly evident in December due to both the effects of the Chinese New Year and anticipation of Donald Trump’s inauguration,” noted Xu Tianchen, a senior economist at the Economist Intelligence Unit. The Chinese New Year festival is set to take place from January 28 to February 4 this year.
Furthermore, Xu added, “Import growth may be supported by increased stockpiling of commodities such as copper and iron ore as part of China’s strategy to ‘buy low.'”
Data from customs revealed a 10.7% year-on-year rise in outbound shipments in December, surpassing the 7.3% growth expected by economists in a Reuters poll and showing improvement from November’s 6.7% increase.
Surprisingly, imports saw a 1.0% growth, marking the strongest performance since July 2024. Economists had predicted a 1.5% decline in imports.
China’s trade surplus widened to $104.8 billion in December, up from $97.4 billion in November. A Chinese customs spokesperson emphasized that there is still “considerable” room for the $18 trillion economy’s imports to grow in the upcoming year.
The momentum in exports has been a crucial factor driving China’s economy amid challenges such as a sustained slowdown in the property market and fragile consumer sentiment.
While the economy has shown signs of stabilization following recent stimulus measures, factory activity continued to expand modestly for the third consecutive month, with services and construction also recovering in December as per an official survey.
South Korea, a major indicator of China’s imports, reported an 8.6% increase in shipments to China in December, suggesting resilience in the demand for technology products.
China’s iron ore imports in 2024 saw a second consecutive yearly increase, reaching a new peak as lower prices prompted heightened buying activity and demand remained strong despite the persistent property crisis weighing on steel demand.
Additionally, the world’s largest agricultural importer procured a record amount of soybeans last year, with buyers rushing to secure U.S. soybeans in anticipation of potential trade tensions between the U.S. and China following Donald Trump’s inauguration.
However, data indicated a decline in crude oil imports last year, marking the first annual decrease in two decades outside of declines induced by the COVID-19 pandemic. This decline was attributed to tepid economic growth and a plateau in fuel
