HONG KONG (AP) - In December, China's exports experienced a growth rate that exceeded expectations, driven by factories racing to fulfill orders ahead of anticipated tariff increases from U.S. President-elect Donald Trump. The year-on-year increase in exports was recorded at an impressive 10.7%, significantly higher than the 7% growth forecasted by economists.

On the other hand, imports saw a modest rise of 1% compared to the previous year, countering analysts' predictions of a decline by approximately 1.5%. This growth in exports relative to imports resulted in China's trade surplus expanding to $104.84 billion, highlighting the robustness of its export sector in the face of potential tariffs.

Trump has made it clear that he intends to raise tariffs on Chinese goods. This move, along with measures to close existing loopholes that allow Chinese exporters to offer their products at lower prices in the U.S., poses a potential challenge for the Chinese export market. If these plans are implemented, they could lead to higher prices for American consumers, while simultaneously putting pressure on sales and profit margins for Chinese exporters.

According to Zichun Huang from Capital Economics, China's exports are anticipated to remain strong in the short term. Huang noted that businesses may be attempting to "front-run" the anticipated tariffs by increasing their outgoing shipments to the U.S. She indicated that the resilience of outbound shipments should be supported by a continued increase in global market share, aided by a relatively weak real effective exchange rate.

However, Huang also cautioned that if Trump follows through with his proposed tariffs later in the year, the export growth could weaken. Thus, while the immediate future appears favorable for Chinese exports, the longer-term outlook is contingent upon U.S. trade policies and tariffs.

Overall, the data from December indicate a dynamic trade environment for China, as exporters look to navigate the uncertainties brought about by the incoming U.S. administration. The contrasting trends in exports and imports reflect the complexities of global trade relations and the potential impact of policy shifts on economic performance.