In 2024, China’s exports hit a record high, rising 10.7 percent year-on-year, despite concerns over impending tariffs from President-elect Donald Trump. This growth contrasts with the anticipated decline in imports, which surprisingly rose by 1 percent. Economists fear that proposed tariffs will adversely impact price points for consumers and China’s GDP. Beijing’s proactive economic measures aim to counter recent slowdowns amid a broader economic recovery effort.
China’s exports experienced a remarkable surge, reaching a record high in 2024, as reported by state media, providing a significant uplift for the nation, especially in light of the anticipated tariffs proposed by President-elect Donald Trump. According to customs data, exports rose by 10.7 percent year-on-year, surpassing economist expectations. Surprisingly, imports also increased by 1 percent, marking the most robust performance since mid-2024. As Trump prepares to implement his populist economic strategy, which includes substantial tariffs on Chinese products, economists express concerns over potential price hikes for American consumers and diminished profit margins for Chinese exporters. Analysts from UBS predict that a 60 percent tariff on Chinese imports could reduce China’s GDP growth by 2.5 percentage points within one year. Zichun Huang, an economist at Capital Economics, noted that firms are likely to expedite shipments to mitigate higher tariffs, suggesting that outbound shipments may remain resilient owing to a weakened exchange rate. In response to a slowing economy, marked by sluggish growth rates and challenges like a real estate crisis, Beijing has initiated aggressive monetary and fiscal measures. This includes interest rate cuts and easing property purchase restrictions, as authorities strive to achieve their GDP growth target of 5 percent. Furthermore, the World Bank has recently upgraded its growth forecast for China in 2024 from 4.8 to 4.9 percent as anticipation builds ahead of forthcoming GDP data releases.
As the world’s second-largest economy, China’s performance in international trade holds significant implications not only for its own growth but also for the global economy. In 2024, as tensions with the United States escalate due to President-elect Donald Trump’s proposed tariffs aimed at Chinese imports, the strength of China’s export market is particularly noteworthy. Despite challenges such as a slowing economy and declining population growth, China has managed to achieve impressive export figures, reflecting resilience in the face of potential economic hurdles.
In summary, China’s exports have achieved unprecedented levels in 2024, defying economist expectations amid looming tariffs from the United States. While both exports and imports showed unexpected strength, concerns remain regarding the anticipated economic impact of the proposed tariffs on trade and growth. As governmental measures aim to stabilize the economy and meet growth targets, China’s trade resilience will be critical in navigating these challenges.
Original Source: www.aljazeera.com
