China's recent export figures indicate robust growth as the nation continues to navigate challenging trade dynamics. In December, mainland China’s exports surged by 10.7% compared to the previous year, while imports saw a modest increase of 1%. This surge is attributed to companies likely attempting to finalize their shipments ahead of the anticipated tariffs from the outgoing Trump Administration, as indicated by the latest data from the Customs Administration. The statistics reveal a substantial trade surplus of $104.84 billion for the month of December alone.
When examining the entire year of 2024, China recorded an impressive export total of $3.58 trillion, coupled with imports amounting to $2.59 trillion. This resulted in a historic surplus of $990 billion, showcasing the strength of China's trade mechanisms even amid potential shifting tides in global commerce. While the marginal increase in December imports could suggest a stagnating domestic economy, specific imported goods did see notable rises.
For instance, imports of unwrought copper soared by 17.8%, while coal imports experienced an 11% growth. Additionally, shipments of iron ore increased by 11.5%, and rare earth imports surged by a remarkable 41.1%. Conversely, crude oil imports declined slightly, falling by 1.1% year over year. As President-elect Donald Trump prepares for his inauguration, Washington is closely monitoring the trade results and policies emerging from Beijing.
Critics have long accused the Chinese government of leveraging state-run banks to excessively finance the country’s manufacturing sectors and provide substantial subsidies for exports. The current situation raises concerns over China's manufacturing strategy, with R. Nicholas Burns, the U.S. ambassador to China, stating that the nation “is making a major mistake in producing two to three times domestic demand in a number of areas, whether it's steel or robotics or electric vehicles, lithium batteries, solar panels, and then exporting the excess all around the world.” This commentary highlights the delicate balance China must manage in maintaining its export strength while addressing domestic economic challenges..