Investing.com — China's trade balance grew more than expected in December, supported by stronger-than-expected exports as domestic companies braced for U.S. trade tariffs under President-elect Donald Trump.
Government data showed on Monday that gross domestic product rose to $104.84 billion in December, compared to expectations of $100 billion. The reading also rose sharply from $92.44 billion in the previous month.
It rose 10.7% year-on-year, more than expectations of 7.3% and up sharply from the 6.7% recorded in November. The strong print came as domestic exporters loaded their US shipments early ahead of hefty tariffs imposed on imports by Trump, who has pledged to impose the tariffs from “Day One” of his presidency.
Trump is scheduled to take office on January 20.
The strong jump in exports also largely offset the unexpected increase in Chinese imports, as domestic demand showed some signs of improvement amid consistent stimulus measures from Beijing.
The growth rate rose by 1% in December, versus expectations for a decline of 1.5%. Imports also improved from the 3.9% decline in the previous month.
Domestic demand in China is expected to improve this year, especially as Beijing allocates more stimulus measures to support the economy. The government is expected to increase fiscal spending to support the economy through the impact of Trump's tariffs.
