Investing.com — China saw a pick-up in exports and a slight recovery in sales last month. The rise was partly fueled by factories quickly sending inventory overseas because of potential trade tensions under the incoming presidency of Donald Trump. Exports have played a key role in China’s economic growth, providing a positive aspect to an economy still facing a long-term structural crisis and low consumer confidence.
Customs data released on Monday showed that exports of goods in December rose 10.7% year-on-year, beating analysts’ forecasts and figures for November. Imports also performed better than expected, recording 1% growth, marking the strongest performance since July last year. Economists pointed to a decline in imports.
The Chinese customs spokesman informed that there is still great potential for the growth of Chinese goods next year. Analysts noted that the weakening Yuan helped Chinese manufacturers find overseas buyers last year. In 2024, China’s exports grew by 5.9% annually, while imports increased by 1.1% during the same period.
Looking ahead, Donald Trump, the US President-elect, has proposed imposing large tariffs on Chinese goods, raising concerns about a potential trade war between the two nations. In addition, Beijing is facing ongoing disputes with the European Union over tariffs on Chinese electric vehicles. The crisis could impact China’s ambitions to boost its auto exports and address concerns of overcapacity.
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