China’s trade surplus reached an impressive USD 104.84 billion in December 2024, a significant increase from USD 75.31 billion during the same period last year. This figure not only surpassed market expectations of USD 99.80 billion but also marked the largest trade surplus since February 2024. The robust performance was primarily driven by a surge in exports as manufacturers sought to capitalize on global demand and anticipated economic shifts under the incoming U.S. administration.

Export Growth Exceeds Expectations

Exports soared by 10.7% year-on-year (yoy) in December, outpacing forecasts of 7.3% and accelerating from November’s 6.7% rise. The spike in sales was attributed to manufacturers rushing to fulfill orders. ahead of potential new tariffs from the U.S. This proactive strategy showcased China’s adaptability in navigating evolving trade dynamics, with sectors like electronics and machinery leading the charge.

Unexpected Rebound in Imports

In an unexpected turn, imports grew by 1.0% yoy in December, rebounding from a 3.9% decline in November and defying predictions of a 1.5% drop. This uptick was driven by Chinese factory managers stockpiling technology products. likely in response to concerns about tighter U.S. controls on semiconductor exports. This strategic procurement highlights China’s emphasis on securing critical components to sustain its manufacturing momentum.

Read More: China Inflation Rate

2024’s Full-Year Trade Performance

For the entirety of 2024, China’s trade surplus reached USD 992.16 billion, underpinned by a 5.9% increase in exports to USD 3.58 trillion and a modest 1.1% rise in imports to USD 2.59 trillion. Despite a slight narrowing of the trade surplus with the U.S. to USD 33.5 billion in December, the annual figures reflect China’s resilience and strategic approach in an increasingly complex global trade environment. Looking ahead, the nation’s ability to navigate geopolitical challenges will be key to maintaining its trade leadership.

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