While Trump's Tariff Threats Loom, China's Economy Hit Record High (X image @investing_china)
Beijing, China: As Donald Trump’s promised tariff hike is looming, China’s exports hit a record high in 2024, as reported by state media. However, threat om tariff from Trump dampens the growth a little. Reportedly, exports rose 10.7 percent year-on-year, beating forecasts from economists, as per customs data showed.
According to the data, imports, which were widely expected to decline, rose 1 percent, which is considered to be the strongest performance since July 2024, customs data showed.
The growth come as Trump vowed to add a sweeping tariffs on Chinese goods after the his return to White House on January 20th. According to economists, Trump’s proposed tariffs would almost certainly raise prices for US consumers and cut into the profit margins of Chinese exporters, as per media report.
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A 60 percent tariff on Chinese imports would lower China’s gross domestic product (GDP) growth by 2.5 percentage points over the following 12 months, analysts at Swiss bank UBS have estimated, reported Al Jazeera.
China’s exports look set to remain strong in the near term as firms frontload shipments to avoid higher tariffs, wrote Zichun Huang, China economist at Capital Economics. “Outbound shipments are likely to stay resilient in the near-term, supported by further gains in the global market share thanks to a weak real effective exchange rate,” Huang wrote.
In recent months, as a method to jumpstart its economy since the great fall during COVID 19, China has announced some of its most aggressive methods including policy rate cuts and loosened restrictions on property purchases. The moves came amid concerns that its 5 percent GDP growth target is slipping out of reach.
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Beijing’s economy has been struggling with some of the slowest growth in decades amid a host of challenges including a prolonged real estate crisis, weak consumer sentiment and a declining population.
