At the beginning of 2025, China’s export growth slowed more than anticipated, as data released by the customs authority on Friday revealed U.S. tariffs have tempered one of the nation’s few areas of economic strength.
In the January-February period, exports rose by 2.3% in U.S. dollar terms compared to the same period last year, far below the 5% increase expected by economists in a Reuters poll. The figure also showed a stark decline from the 10.7% growth seen in December.
Meanwhile, imports plummeted by 8.4% year-on-year, a sharp contrast to the 1% growth anticipated by analysts, following a minimal increase in December and preceding consecutive declines in previous months.
Despite these figures, China’s late-2024 stimulus measures appear to have shored up some economic sectors.
Since late last year, Chinese exporters have been increasingly front-loading shipments in light of additional tariffs from the U.S., which began with a 10% hike in February, followed by another in March, raising the total to 20%.
Nevertheless, the world’s second-largest economy countered such tariffs with its own on selected U.S. goods and imposed restrictions on crucial mineral exports to the U.S.
Though trade tensions continue to simmer, Chinese authorities recently announced an ambitious growth target of approximately 5% for the year. This goal comes as domestic demand faces challenges, prompting an adjustment of the inflation target to historically low levels.
