China experienced robust export growth in December as businesses expedited orders in anticipation of higher tariffs expected to be imposed after U.S. President-elect Donald Trump takes office next week.
According to data released by the country’s customs office on Monday, total overseas shipments expanded for the ninth consecutive month, rising 10.7% year-on-year in dollar terms. This growth rate exceeded November’s 6.7% increase and surpassed the 7.3% forecast in a Reuters poll of economists.
Exports to the U.S. increased by 15.6% year-on-year, reaching their highest level since September 2022. Similarly, exports to the Association of Southeast Asian Nations (ASEAN) bloc surged 18.9% to a record high, indicating that Chinese exporters might be rerouting U.S.-bound goods through third countries to evade tariffs.
The growth in outbound shipments spanned diverse products, including high-tech goods such as computing equipment and integrated circuits, as well as garments and textiles. Exports of steel, automobiles, and household appliances also saw a year-on-year increase of more than 10%.
December saw dollar-denominated imports rise by 1.0% year-on-year, reversing the decline recorded in the first two months of the quarter. This figure exceeded the 1.5% decline anticipated by Reuters. Consequently, China’s trade surplus expanded to $104.8 billion, up from $97.44 billion in November.
High-tech products led the import growth, climbing 12.8% from December 2023. This increase was likely driven by Chinese firms stockpiling advanced chips and electronic materials from U.S. suppliers amid concerns about potential trade restrictions under the Trump administration.
For the full year 2024, exports rose 5.9% to $3.58 trillion, while imports increased by 1.1% to $2.59 trillion, resulting in a record trade surplus of $992 billion.
At a press conference, Wang Lingjun, Vice Minister of the General Administration of Customs, addressed concerns about the widening export-import gap and potential trade protectionism. “Some countries abuse export controls and restrict exports to China. We want to import more, but you don’t allow it, and then you are overly concerned about the trade surplus. This is a contradiction in itself,” he remarked.
Looking ahead, Lv Daliang, a spokesman for the customs office, expressed optimism about import growth in 2025, citing “ample room for growth.” Despite external challenges, Lv remained confident in the resilience and vitality of China’s exports.
The China Association of Automobile Manufacturers reported a 19.3% increase in vehicle exports for 2024. Internal combustion engine vehicles constituted 78% of shipments, while new energy vehicles (NEVs), which include electric and hybrid models, made up the remainder. NEV exports grew 6.7%, lagging behind the 23.5% growth for conventional vehicles. This discrepancy partly reflects new restrictions on Chinese electric vehicles imposed by certain governments.
Zichun Huang, China economist at Capital Economics, warned that overall exports might weaken in 2025 if Trump’s tariff threats materialize. However, Huang noted that import volumes could recover in the short term as increased fiscal spending boosts demand for industrial commodities.
American importers have accelerated their purchases of Chinese goods in recent months, preparing for potential trade barriers. Trump, who previously pledged to impose tariffs of up to 60% on Chinese imports during his campaign, announced plans to implement an additional 10% tariff on his first day in office.
Strong exports remain a bright spot for China’s economy, which continues to struggle with a property market crisis and deflationary pressures. The country’s consumer inflation rate fell to a nine-month low in December. Beijing began implementing stimulus measures in September to counteract the economic downturn, with their effects expected to unfold in the coming months.
China is set to release its fourth-quarter gross domestic product (GDP) statistics on Friday.
