Economy China's foreign trade remains below expectations
China's foreign trade was weaker than expected in November. According to data from the Beijing Customs Administration, exports in US dollars rose by 6.7 percent compared to the previous year. Imports fell by 3.9 percent.
10.12.2024, 05:52
SDA
Analysts had expressed higher expectations for both figures in advance. This year in particular, China's robust foreign trade has been a pillar of support for the ailing Chinese economy, which is suffering from the ongoing real estate crisis and weak domestic demand. However, with the arrival of Donald Trump in the White House, it is becoming apparent that China will also come under greater pressure in terms of trade.
Trump had already signaled during his election campaign that he would tighten trade policy towards China and brought high tariffs on all Chinese imports into play. China appears to be strategically preparing for this by trying to strengthen the resilience of its domestic economy.
This week, the Politburo announced a more "proactive" fiscal policy for 2025. This means that Beijing wants to support the economy with additional government spending. These measures could be aimed in particular at strengthening domestic demand and thus reducing dependence on foreign trade. A "moderate easing" of monetary policy is also planned.
Investigation launched against Nvidia
Beijing is also showing that it knows how to defend itself. As reported by Chinese state media, an antitrust investigation has been launched against the US chip manufacturer Nvidia. The state market regulation authority is investigating possible violations of the anti-monopoly law. The measure is seen as retaliation against new chip sanctions imposed by Washington. The USA recently imposed further restrictions on the export of high-performance chips and chip manufacturing equipment to China.
In response, China had already banned the export of essential minerals such as gallium and germanium, which are essential for chip production, to the USA. In addition, Chinese industry associations have called on companies to reconsider buying US chips and instead rely on local alternatives, such as those from Huawei.
In view of the tensions that have been increasing for years, the Chinese authorities are responding with policies aimed at making the Chinese economy less dependent on Western markets. China is trying to diversify its trade relations and open up new markets, for example in Africa.
