China’s Trade Data Reveals Surprising Growth in Exports and Imports

According to recent data from Chinese customs, the country’s exports grew 6.6% in December, surpassing analyst expectations of 3% growth, while imports rose 5.7%, exceeding forecasts of 0.9% growth. This significant increase in trade has led to a record-high annual trade surplus of $1.19 trillion, up 20% from 2024. The data also shows that China’s exports for the full year grew 5.5%, while imports remained flat.

Shipments to the US plunged 30% in December from a year ago, marking the ninth consecutive month of decline, while imports from the US dropped 29%. This sharp drop in trade with the US is attributed to ongoing tariff tensions. In response, Chinese exporters have increased shipments to non-US markets, leading to concerns from major trading partners, including the European Union. International Monetary Fund Managing Director Kristalina Georgieva has urged Beijing to shift away from relying on exports for growth and accelerate its push to boost domestic consumption.

Surplus Worries and Trade Tensions

China’s trade surplus is expected to have a significant impact on the global trading system, with Eswar Prasad, a senior fellow at Brookings Institution, warning that it could be as destructive as Trump’s tariffs. The country’s sluggish domestic demand is dragging down global growth, and nations around the world may seek protection for their own economies by erecting trade barriers. Chinese officials have pledged to expand imports and work towards balancing trade, with exports to the European Union and the Association of Southeast Asian Nations rising 12% and 11%, respectively, in December.

The nearly $19 trillion economy has struggled to shake off deflationary pressure, with a deepening real estate collapse weighing on household demand and a weak job market clouding consumer confidence. Consumer prices in the country remained flat in 2025, missing the official target of around 2% increase. The World Bank has raised its forecast for China’s growth in 2026 to 4.4%, anticipating further fiscal stimulus, continued resilience of exports, and improved investment sentiment.

Trade Relations and Economic Growth

China and the US agreed to roll back a series of export-control measures and higher tariffs in a 1-year trade truce in October, following a meeting between Chinese President Xi Jinping and his American counterpart Donald Trump. Beijing also pledged to buy at least 12 million tons of US soybeans over the next two months. According to official data, the country bought 111.8 million tons of soybeans last year, up 6.5% from the 2024 level. China’s exports of rare earths jumped 32% in December to 4,392 tons, and throughout the year, its shipments of the critical mineral were 12.9% more than the previous year.

China is set to release its annual and fourth-quarter gross domestic product data next Monday, with economists polled by Reuters expecting the world’s second-largest economy to have expanded 4.5% in the final quarter. Beijing had set its growth target for 2025 at around 5%. For more information, visit Here

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Smart Tip for Readers

To stay informed about China’s trade data and its impact on the global economy, it’s essential to follow reputable sources and analyze the data in the context of the country’s economic policies and trade relations. By doing so, readers can gain a deeper understanding of the complex factors influencing the global trade landscape and make informed decisions.