Chinese exports soared to record levels in 2024, partly due to factories rushing to sell inventory to the United States ahead of a potential second term for Donald Trump. During his first presidency, Trump imposed higher tariffs on Chinese goods and has threatened even steeper duties if he returns to the White House next week. In response, American companies have been stockpiling Chinese goods.
In 2024, China’s total exports increased by 7.1%, surpassing the 25 trillion yuan ($3.4 trillion) mark for the first time. December alone saw a 10.7% year-on-year rise in export value.
Bright Spot in a Struggling Economy
The export growth provides a much-needed boost for China’s faltering economy, which continues to grapple with a prolonged real estate crisis and weak consumer confidence. Low consumer spending has dampened domestic demand, forcing the government to implement support measures to stimulate consumption.
China’s total imports also rose, climbing 2.3% in 2024, with a 1% increase in December. Both figures exceeded economists’ expectations.
Surge in Chinese Auto Exports
Chinese automobile exports saw remarkable growth in 2024, increasing by 19.3%, according to the China Association of Automobile Manufacturers (CAAM). Plug-in hybrid vehicles were particularly popular abroad, with their exports skyrocketing by 190%.
However, the European Union has countered this trend by raising import tariffs on Chinese cars to 45%, citing concerns that Beijing’s subsidies make Chinese models unfairly competitive.
U.S.-China Trade Tensions Loom
Trump has also proposed imposing tariffs as high as 60% on Chinese goods as part of his campaign rhetoric. If implemented, such measures could significantly reshape trade dynamics, potentially impacting both countries’ economies.