China's exports in January-February grew by 7.1%, imports by 3.5%, stronger than forecasts

By Rhod Mackenzie

In a statement, the General Administration of Customs of the People's Republic of China reported that Chinese exports in January-February 2024 rose by 7.1% YoY to $528.01 billion, while imports increased by 3.5% to $402.85 billion.

Analysts had predicted a 1.9% increase in exports and a 1.5% increase in imports on average, according to Trading Economics.

To avoid data distortion due to long holidays caused by the Lunar New Year, which can fall in both January and February, the Customs Service traditionally publishes economic indicators for January and February together.

In January-February, exports increased to the USA by 5%, Russia by 12.5%, India by 4.9%, Canada by 12.7%, and to ASEAN countries by 6%. However, supplies to Japan decreased by 9.7%, South Korea by 9.9%, Australia by 7.5%, and European Union countries by 1.3%.

Imports to China from South Korea increased by 8.8% and from ASEAN by 3.3%. In contrast, supplies from Japan decreased by 5%, from the European Union by 9.4%, from the USA by 9.7%, and from Australia by 0.9%.

China's imports of oil increased by 5.1%, petroleum products by 35.6%, iron ore by 8.1%, natural gas by 23.6%, and coal by 22.9%. However, soybean purchases fell by 8.8%, reaching a five-year low.

China's foreign trade balance remained positive in January-February, amounting to $125.16 billion, up from $103.8 billion during the same period in 2023. This included a trade surplus of $47.3 billion with the United States.

In 2023, China's exports decreased by 4.6% to $3.38 trillion, while imports fell by 5.5% to $2.56 trillion, resulting in a foreign trade surplus of $823 billion.