BEIJING (Reuters) – China’s export growth picked up steam in December, while imports recovered, ending the year on a positive note as the world’s second-largest economy braces for an uptick on the trade risks of the incoming US administration.

Outbound shipments in December rose 10.7% year-on-year, customs data showed on Monday, beating the 7.3% growth forecast in a Reuters poll of economists, and up from a 6.7% rise. in November.

Imports surprised to the upside with 1.0% growth, the strongest performance since July 2024. Economists had expected a 1.5% decline.

US President-elect Donald Trump, who is set to return to the White House next week, has proposed massive tariffs on Chinese goods, sparking fears of a new trade war between the two superpowers.

Adding to the challenges, unresolved disputes with the European Union over tariffs of up to 45.3% on Chinese electric vehicles threaten to curb China’s ambitions to expand auto exports.

Meanwhile, China’s trade surplus grew to $104.8 billion last month, up from $97.4 billion in November.

Export momentum is a critical driver for China’s economy, which remains weighed down by a prolonged slump in the property market and weak consumer confidence.

There are signs, however, of stabilization after China’s stimulus push in recent months.

Factory activity remained at a modest expansion for the third consecutive month, while services and construction recovered in December, an official survey showed.

South Korea, a key indicator of Chinese imports, reported an 8.6% increase in shipments to China in December, suggesting strength in demand for technology products.

China’s top leaders have pledged to loosen fiscal policy and adopt a more active fiscal policy by 2025, aiming to balance external pressures and stimulate domestic demand.

The government is targeting economic growth of around 5% for the year, a goal that has proven challenging to achieve sometime in 2024.