Janice R. Andrews
China’s exports reached unprecedented heights in 2024, providing a vital boost to its economy as it braces for potential new tariffs from incoming US President Donald Trump. Exports climbed to 25.45 trillion yuan ($3.47 trillion), reflecting a 7.1 percent year-on-year increase, according to state broadcaster CCTV. Imports also grew by 2.3 percent, pushing total trade volume to a record 43.85 trillion yuan, a five percent annual rise.
In December, exports surged 10.7 percent, exceeding economists’ forecasts of 7.5 percent, while imports rose by one percent year-on-year. Analysts suggest that businesses ramped up exports ahead of Trump’s return to the White House, fearing stricter trade policies.
This trade success contrasts with domestic economic challenges, including sluggish consumption and a lingering property sector downturn, which have hindered China’s post-pandemic recovery. Preliminary estimates indicate the economy grew by about five percent in 2024, meeting President Xi Jinping’s target.
To counter domestic economic pressures, Beijing implemented bold measures, such as removing home-buying restrictions, offering subsidies for household goods, and reducing key interest rates. However, experts emphasize the need for more policies to stimulate domestic spending and lessen dependence on exports.
The looming possibility of renewed tariffs under Trump presents a significant challenge. His previous tenure saw sweeping trade restrictions on China, and the prospect of more severe measures has sparked concerns of a fresh trade conflict.
China’s trade performance highlights the importance of exports in bolstering its economy, even as officials aim to promote balanced growth through stronger domestic consumption. The government’s 2024 economic growth data, set to be released this week, will reveal further insights into the economy’s trajectory and the impact of recent policy actions.
As China navigates uncertainties in global trade and its domestic market, its ability to adapt to these challenges will play a key role in sustaining economic momentum.
