Explainer | China’s economy to take time to regain its mojo: 7 takeaways from December’s trade, inflation data

China’s exports rose by 2.3 per cent in December compared to a year earlier, while imports rose by 0.2 per cent year on year last month

China’s consumer price index (CPI) fell by 0.3 per cent year on year in December, while the producer price index (PPI) fell for the 15th consecutive month

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China’s consumer price index (CPI) fell by 0.3 per cent year on year in December. Photo: AFP

Andrew Mullen

Published: 12:00am, 13 Jan 2024Updated: 1:43am, 13 Jan 2024

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1. Exports propped up by low base, robust motor vehicle shipments

China’s exports rose by 2.3 per cent from a year earlier in December to US$303.6 billion.

This was better than the expected 2.1 per cent increase predicted by Chinese data provider Wind, and follows a rise of 0.5 per cent in November.

Analysts said the increase in December was helped by a low base from 2022.

“The moderate improvement in the export growth reading was partly driven by a slightly lower base, which was distorted by the Covid-led disruptions a year ago, while exports of motor vehicles remained robust in December,” said analysts at Nomura.

Analysts at Capital Economics said China’s export values rose year on year at the fastest rate since April.

Overall in 2023, China’s exports fell by 4.6 per cent to US$3.38 trillion, year on year, below Wind’s prediction of a 1.8 per cent increase.

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