- China’s exports hit a record high this year, driven by the rush to beat higher US tariffs. Sales abroad rose 2.3% to $540 billion in the first two months, while imports fell 8.4%.
- The overall trade surplus reached nearly $171 billion, indicating strong export performance despite weaker domestic demand and a downturn in the property sector.
China’s exports reached a record $540 billion in the first two months of 2025, marking a 2.3% increase compared to the same period last year. This surge is attributed to companies expediting shipments to the United States ahead of anticipated tariff hikes under President Donald Trump’s administration, reports Bloomberg.
Import Decline and Trade Surplus
While exports saw an uptick, imports experienced an unexpected decline of 8.4%, resulting in a record trade surplus of nearly $171 billion. The decrease in imports reflects sluggish domestic demand, influenced by a downturn in the property sector and overall economic conditions.
Impact of U.S. Tariffs
The recent export figures offer insight into how China’s economy is responding to escalating trade tensions with the United States. The U.S. imposed a 10% levy on almost all imports from China on February 4, which was subsequently increased to 20% earlier this week. Economists anticipate that the adverse effects of these higher tariffs on China’s exports will become more evident in the coming months.
Government Measures and Economic Outlook
In response to these challenges, China’s government has announced plans to expand the budget deficit and implement additional fiscal stimulus measures to achieve a 5% economic growth target for the year. Efforts are also underway to boost domestic consumption and reduce reliance on exports.
The record export figures underscore the complexities of global trade dynamics and the potential ramifications of ongoing tariff disputes on China’s economic landscape.
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Source: Bloomberg
