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By Lilith Foster-Collins
News Reporter
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China's trade surplus grew to $104.84 billion in December, as exports rose faster than expected, according to official customs data released on Monday.
Chinese factories rushed to complete orders ahead of higher tariffs threatened by President-elect Donald Trump.
Why It Matters
Trump has said he will raise tariffs on Chinese goods when he takes office as president.
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The plans will likely raise prices in America and make it harder for Chinese exporters to sell in the U.S.
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What To Know
Exports climbed 10.7 percent from a year earlier, surpassing the forecasted 7 percent, according to official customs data released on Monday.
Imports rose 1 percent year-on-year, defying analyst expectations of a 1.5 percent decline.
With exports outpacing imports, China's trade surplus expanded.
Exports to the U.S. surged 15.6 percent in December compared to the previous year, while shipments to the European Union rose 8.8 percent.
The total value of China's imports and exports hit a record 43.85 trillion yuan (nearly $6 trillion), up 5 percent from last year, officials said at a press briefing in Beijing.
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China's economy has slowed since the pandemic, partly due to job losses and a housing market downturn, while exports have continued to grow.
Under leader Xi Jinping, the ruling Communist Party has focused on upgrading factories and expanding high-tech manufacturing.
The report noted that exports of mechanical and electrical products rose nearly 9 percent last year, with "high-end equipment" shipments climbing more than 40 percent. Electric vehicle exports increased by 13 percent, 3D printer shipments jumped almost 33 percent, and industrial robot exports surged 45 percent.
E-commerce trade, driven by companies such as Temu, Shein, and Alibaba, totaled 2.6 trillion yuan ($350 billion), more than double the level in 2020.
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Chinese officials said the country does not seek a trade surplus and aims to boost imports, but imports lagged exports last year, partly due to lower prices for key commodities like oil and iron ore.
Weak domestic demand, as consumers and businesses reduced spending, also contributed to slower import growth.
What People Are Saying
Zichun Huang of Capital Economics said that China's exports are likely to remain strong in the near-term, as businesses try to "front-run" potentially higher tariffs.
"Outbound shipments are likely to stay resilient in the near-term, supported by further gains in global market share thanks to a weak real effective exchange rate," she wrote.
Exports will likely weaken later in the year if Trump follows through on his threat to impose tariffs, Huang said.
Wang Lingjun, the Customs Administration's deputy director general, said that China is the world's largest exporter and the main trading partner of more than 150 countries and regions.
Lv Daliang, a Customs Administration spokesperson, said: "Regarding this year's imports, we believe that there is still a lot of room for growth. This is not only because my country's market capacity is large, there are many levels, and it has huge potential."
"In addition, some countries politicize economic and trade issues, abuse export control measures, and unreasonably restrict the export of some products to China, otherwise we will import more," he said.
What Happens Next
When Trump institutes trade tariffs on China, Chinese exports to the U.S. are expected to drop, and prices are expected to rise on certain goods in America.
This article includes reporting from the Associated Press
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