World trade China's exports fall short of expectations
Against the backdrop of a looming trade war with the USA, China's foreign trade has made a subdued start to the new year. This is according to data from Chinese customs.
07.03.2025, 06:14
SDA
According to the data, exports from the second-largest economy increased by 2.3 percent to around 500 billion euros in January and February compared to the first two months of the previous year. Imports fell by 8.4 percent to 369 billion US dollars. Both figures fell short of analysts' expectations.
The export of goods to the USA continues to be a very important pillar for the Chinese economy. However, after taking office, US President Donald Trump imposed new special tariffs of 20% on Chinese imports. There are fears in China that these tariffs could rise further. It is possible that the government in Beijing could retaliate with further counter-tariffs - similar to the trade dispute during Trump's first term in office - and the two largest economies could slide into an open trade war.
More domestic consumption to support trade
Despite the threat of upheaval, the Chinese leadership set itself a growth target of around five percent at this year's People's Congress on Wednesday. The domestic economy is also to be boosted with new debt and, above all, domestic consumption is to be given a boost. In this way, Beijing hopes to counteract poor business in foreign trade.
