Editorial | Robust exports show China is embedded in global supply chain
As Trump administration looms, record trade performance for 2024 will fuel talk of overcapacity and increase pressure on Beijing to rebalance the economy
China’s record export performance in 2024 after a surge in December reflects expectations that US president-elect Donald Trump will raise tariffs on Chinese products soon after he is inaugurated on Monday.
It may not be repeated any time soon, which keeps the pressure on policymakers to maintain economic growth by reviving sluggish domestic consumer demand.
Thanks in part to record shipments of electric vehicles, which helped boost the value of automotive exports by 22.8 per cent, China’s exports grew by 5.9 per cent year on year in 2024 to US$3.58 trillion, yielding a trade surplus of US$992.1 billion.
Imports grew by only 1.1 per cent to US$2.59 trillion, reflecting a slowdown in domestic activity, which has remained stubbornly static despite measures to increase consumption.
In December alone, exports grew by 10.7 per cent, beating the 6.7 per cent growth recorded in November. Trump’s campaign vow of 60 per cent tariffs on all Chinese goods has already begun to have an effect, with exporters rushing to get their orders in ahead of Trump’s inauguration ceremony.
A story behind the headlines is that this is the first year China’s trade with countries involved in the Belt and Road Initiative – Beijing’s strategy for infrastructure-driven regional connectivity – accounts for more than 50 per cent of the total.
