China's export sector experienced robust growth in December, surpassing expectations and contributing to a record trade surplus for 2024, as businesses expedited orders in anticipation of potential trade tariffs.
According to data released by the General Administration of Customs on Monday, exports rose by 10.7% year-on-year in December, accelerating from November's 6.7% increase and exceeding economists' projections of a 7.3% rise. Concurrently, imports edged up by 1.0% year-on-year, defying predictions of a 1.5% decline, which followed a 3.9% decrease in November.
As a result, the trade surplus widened to $104.8 billion, up from $97.4 billion in November, surpassing the anticipated $100 billion. Zichun Huang, an economist at Capital Economics, commented that shipments are expected to continue their strong performance in the coming months as U.S. importers amass Chinese goods in advance of impending tariff increases.
Nonetheless, exports are predicted to slow down later in the year as President Trump enforces his tariff measures. Huang also suggested that imports are likely to recover further in the near term due to increased fiscal spending driving demand for industrial commodities.
The customs data indicated that for the entire year of 2024, exports rose by 5.9%, and imports increased by 1.1%, culminating in a record trade surplus of $992.1 billion.
In a related development, Chinese regulators pledged to stabilize the depreciating yuan on Monday. Both the People's Bank of China and the State Administration of Foreign Exchange emphasized their commitment to maintaining the yuan exchange rate at stable and reasonable levels to prevent excessive fluctuations.
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