CHINA has overtaken Germany to become the world's top exporter after its overseas shipments surged 17.7 percent from a year earlier in December, another sign that the nation's economy is sparkling amid widespread global torpor.
Chinese exports rose for the first time in 14 months in December to US$130.7 billion, giving an export total for 2009 of US$1.2 trillion, the General Administration of Customs said yesterday.
This eclipsed the 816 billion euros (US$1.18 trillion) for Germany's exports last year forecast by its foreign trade organization BGA, or the Federation of German Wholesale and Foreign Trade, according to The Associated Press.
However, Germany is still in advance in its higher-value exports, compared with China's strength in selling shoes, toys, furniture and low-tech goods abroad.
Germany is also a major supplier of factory equipment used by top Chinese manufacturers.
China's trade surplus last year decreased 34.2 percent year on year to US$196 billion, the Customs said, as exports slumped 16 percent on an annual basis due to the international financial crisis.
The strong export rebound in December came as a surprise. Many economists expected an increase - but not one so high.
"It really beat our expectations," said Li Maoyu, an analyst at Changjiang Securities Co.
He earlier forecast that exports would lift in December, ending a downturn that started in November 2008, but he had a conservative prediction of an annualized growth of between 2 to 4 percent.
The Customs said December exports were the fourth-largest in value on record. China's imports last month surged 55.9 percent to a record high of US$112.3 billion, according to the Customs.
"The recovery in China's trade has gained momentum," it said yesterday.
"The strong growth in December showed that China's stimulus measures have taken effect. Abundant domestic demand helped to raise imports growth, which also contributed to a global recovery."
China is on track to achieve an 8 percent growth target for last year, boosted by its 4 trillion yuan (US$586 billion) stimulus package.
Gross domestic product gained 8.9 percent year on year in the third quarter, consolidating growth of 7.9 percent in the second quarter and 6.1 percent in the first quarter.
Last year, China surpassed the United States to become the world's biggest auto market.
Exports grew after China helped struggling exporters battered by the global crisis, the Customs said.
China has raised export rebates seven times since August 2008, involving products valued at US$676 billion whose tax payments were cut by 16.4 percent.
China also accelerated the establishment of free-trade areas to reduce tariffs and business barriers.
Xue Jun, an analyst at CITIC Securities Co, said restoring external demand would help China's exports to sustain growth in coming months. "A global economic recovery has become more apparent in recent months, and this will help Chinese exports to secure growth momentum," Xue said.
He also warned that rising protectionism may put a drag on exports.
The European Union remained China's biggest trading partner in 2009 with a bilateral volume of US$364 billion, followed by the US and Japan.
But all of them reported a double-digit reduction in trade with China due to the global meltdown.
The Customs said Shanghai's exports rebounded last month and increased 23.8 percent from a year earlier to US$15.2 billion.
