Athira Sethu
Kochi, 13 January 2025
China’s trade surplus rose to a record $992 billion in 2024, up 21% from the previous year. This was mainly driven by strong exports and weak imports. Exports were especially high in December, rising nearly 11% to $336 billion, making it the second-best month ever for Chinese exports. Overall, China exported $3.6 trillion worth of goods in 2024.
Strong export performance has been a boon for China’s economy, which is still reeling from a housing crisis and weak domestic demand. But the future of China’s trade is not certain, particularly with President-elect Donald Trump’s promise to raise tariffs on Chinese goods. That could send Chinese exporters looking elsewhere, creating even more global trade tension.
Imports in 2024 increased by only 1.1%, which means that demand within China is weak. Export prices have been declining for more than a year due to deflation, which means that even though China shipped more goods, they earned less money. This has resulted in an increase in the volume of trade, with the value of exports increasing at a slower rate.
The busiest world port, the Shanghai port, received more than 51 million containers in 2024; despite the challenges, trade was on a considerable upsurge. The long-term outlook will be shaped by the new U.S. administration policy and China’s response to any potential tariff hikes.