Investing.com-- China’s trade balance grew more than expected in December, aided by stronger-than-expected exports as local companies braced for U.S. trade tariffs under President-elect Donald Trump.
Trade balance grew to $104.84 billion in December, compared to expectations of $100 billion, government data showed on Monday. The reading also rose sharply from the $92.44 billion seen in the prior month.
Exports surged 10.7% year-on-year, more than expectations of 7.3% and up sharply from the 6.7% seen in November. The strong print came as local exporters front-loaded their U.S. shipments before the imposition of steep import tariffs by Trump, who has vowed to impose the duties from “day one” of his presidency.
Trump will take office on January 20.
The strong jump in exports also largely offset an unexpected increase in Chinese imports, as local demand showed some signs of improvement amid consistent stimulus measures from Beijing.
Imports grew 1% in December, against expectations for a drop of 1.5%. Imports also improved from the 3.9% drop seen in the prior month.
Local demand in China is expected to improve this year, especially as Beijing doles out even more stimulus measures to support the economy. The government is expected to ramp up fiscal spending to tide the economy through the impact of Trump’s tariffs.