### China's Trade Figures Show Weakness Amidst Rising U.S. Tariffs China's trade data for January and February 2025 reveals a concerning trend, with exports increasing by only **2.3%** year-on-year, significantly below expectations, while imports experienced a sharp decline of **8.4%**. This downturn is attributed to escalating trade tensions with the United States, particularly as new tariffs loom under the Biden administration, which has prompted Chinese exporters to rush shipments in anticipation of further trade barriers [https://www.reuters.com/markets/asia/chinas-january-february-exports-imports-weaker-than-expected-2025-03-07][https://www.cnbc.com/2025/03/07/china-jan-feb-exports-data-imports-this-year.html]. ### Breakdown of Trade Performance and Influencing Factors 1. **Export Performance**: - Exports rose by **2.3%**, missing the **5%** growth forecast from economists [https://www.devdiscourse.com/article/technology/3288633-update-1-chinas-january-february-exports-imports-weaker-than-expected]. - This growth is a slowdown from December's **10.7%** increase, indicating a loss of momentum [https://www.devdiscourse.com/article/business/3288977-chinas-exports-and-imports-weaken-in-jan-feb-as-demand-slides-amid-global-trade-uncertainty]. 2. **Import Decline**: - Imports fell by **8.4%**, marking the sharpest decline since July 2023 [https://www.cnbc.com/2025/03/07/china-jan-feb-exports-data-imports-this-year.html]. - This unexpected contraction reflects a broader trend of reduced demand amid global trade uncertainties [https://wtop.com/world/2025/03/chinas-exports-and-imports-weaken-in-jan-feb-as-demand-slides-amid-global-trade-uncertainty]. 3. **Impact of U.S. Tariffs**: - The anticipation of new tariffs under President Biden has led to a rush in shipments, but the subsequent decline in trade figures suggests that this strategy may not be sustainable [https://www.scmp.com/economy/economic-indicators/article/3301402/chinas-export-growth-slows-us-tariffs-bite]. - The overall economic outlook for China is clouded by these trade tensions, which are expected to continue influencing trade dynamics throughout the year [https://www.reuters.com/world/china/chinas-exports-likely-slowed-start-year-us-trade-clouds-gather-2025-03-06]. ### Key Data Points from China's Trade Report - **Exports**: - January-February 2025: **+2.3%** year-on-year - December 2024: **+10.7%** year-on-year - Forecast: **5%** growth expected - **Imports**: - January-February 2025: **-8.4%** year-on-year - Sharpest decline since July 2023 - **Trade Balance**: - Despite the decline in imports, the trade balance grew more than expected due to the lower import figures [https://in.investing.com/news/economic-indicators/china-trade-balance-grows-more-than-expected-in-janfeb-as-imports-plunge-4708638]. ### Summary of Findings In summary, **China's trade performance in early 2025 has shown significant weakness**, with exports and imports both underperforming expectations. The **2.3%** growth in exports and the **8.4%** decline in imports highlight the challenges posed by escalating U.S. tariffs and global trade uncertainties. 1. **Export growth has slowed significantly**, missing forecasts and indicating potential vulnerabilities in China's economic recovery. 2. **Imports have sharply declined**, reflecting reduced domestic demand and the impact of external trade pressures. 3. **The trade balance has improved**, but this is largely due to the drop in imports rather than a robust export performance. These trends suggest that **China's economic outlook remains precarious**, heavily influenced by ongoing trade tensions with the United States and the global economic environment [https://www.devdiscourse.com/article/business/3288977-chinas-exports-and-imports-weaken-in-jan-feb-as-demand-slides-amid-global-trade-uncertainty][https://www.scmp.com/economy/economic-indicators/article/3301402/chinas-export-growth-slows-us-tariffs-bite].