BEIJING (Reuters) – China’s export growth accelerated in December while imports rebounded, ending the year on a positive note as the world’s second-largest economy braces for rising trade risks with the new U.S. administration.
Outbound shipments rose 10.7% year-on-year in December, customs data showed on Monday, beating the 7.3% growth forecast in a Reuters poll of economists and improving on a 6.7% increase in November.
Imports surprised by growing 1.0%, the strongest performance since July 2024. Economists had expected a 1.5% decline.
US President-elect Donald Trump, who is due to return to the White House next week, has proposed steep tariffs on Chinese goods, sparking fears of a renewed trade war between the two superpowers.
Adding to the challenges, pending disputes with the European Union over tariffs of up to 45.3% on Chinese electric vehicles threaten to hamper China’s ambitions to expand its auto exports.
Meanwhile, China’s trade surplus widened to $104.8 billion last month, up from $97.4 billion in November.
Export momentum has been a key driver of China’s economy, which remains weighed down by a prolonged slump in the housing market and fragile consumer confidence.
There were, however, signs of stabilization following China’s stimulus in recent months.
Factory activity remained modestly up for the third straight month, while services and construction rebounded in December, an official survey showed.
South Korea, a key indicator of Chinese imports, reported an 8.6% increase in shipments to China in December, indicating resilience in demand for technology products.
China’s top leaders have pledged to loosen monetary policy and adopt a more proactive fiscal policy in 2025, with the aim of neutralizing external pressures and revitalizing domestic demand.
The government is aiming for economic growth of around 5% over the year, a target that has sometimes proved challenging to achieve in 2024.
