China’s trade balance for December showed a significant increase, with a surplus of CNY752.91 billion, up from CNY692.8 billion in the previous month. The country’s exports grew by 10.9% year-on-year (YoY) in December, a sharp rise from November’s 1.5%. Imports, however, saw a smaller increase of 1.3% YoY, compared to 1.2% in the previous month.
In US Dollar (USD) terms, China’s trade surplus expanded further in December, reaching $104.84 billion, exceeding expectations of $99.8 billion. This was an increase from the previous month’s surplus of $97.44 billion. Exports also rose by 10.7% YoY in December, surpassing the expected 7.3% and the previous 6.7%. Imports grew by 1% YoY, a notable improvement over the expected -1.5% and last month’s -3.9%.
Annual Overview For the full year, China’s USD-denominated exports grew by 5.9% YoY, while imports saw a smaller increase of 1.1%. China’s trade surplus with the US for December stood at $33.5 billion, up from $29.81 billion in November. For the entire year, China’s trade surplus with the US reached $361.03 billion.
Market Impact The strong trade data from China supported the Australian Dollar (AUD), with AUD/USD holding its recovery gains above 0.6150. The pair was up 0.10% on the day, trading near 0.6157 at the time of writing.
This positive data may signal continued resilience in China’s export sector and could have broader implications for the global economy, particularly in trade relations with the US.
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