China's Trade Resurgence Amid Global Challenges

China's exports increased significantly in December, signaling economic resilience despite potential trade conflicts with the U.S. and hefty EU tariffs on Chinese electric vehicles. With a focus on commodities, imports also rose unexpectedly, supporting China's strategy to stabilize growth amid domestic economic challenges.

China's exports gained momentum in December as imports made an unexpected recovery, offering a positive end to the year for the world's second-largest economy. However, the specter of significant trade tensions looms, notably with the incoming U.S. administration, as President-elect Donald Trump proposes steep tariffs on Chinese products, inciting fears of a trade war.

Compounding these challenges are unresolved tariff disputes with the European Union, particularly affecting Chinese electric vehicles, which face duties as high as 45.3%. 'Trade frontloading was particularly noticeable in December due to the Chinese New Year and Trump's impending inauguration,' remarked Xu Tianchen, senior economist at the Economist Intelligence Unit.

Meanwhile, China's economic resilience is further evident as import growth beat expectations, recording a 1.0% increase, against a forecasted decline of 1.5%. Key sectors such as technology and commodities like iron ore have shown robust demand, despite ongoing hurdles in the property and steel markets. The government has pledged policy adjustments to spur domestic demand and target a 5% growth rate in 2025.

(With inputs from agencies.)