China's trade surplus in US dollar terms widened to $104.84 billion in December from $97.44 billion in November. Exports rose 10.7 percent on the year in December after increasing 6.7 percent in November, while imports rose 1.0 percent on the year after a previous decline of 3.9 percent.

The trade surplus reported today was above the consensus forecast of US$99.80 billion. The China RPI and RPI-P rose from minus 36 to minus 14 and from minus 60 to minus 30 respectively, indicating that recent Chinese data in sum are still coming in well below consensus forecasts.

China's exports are forecast to have posted a faster year-on-year rise in December versus November's 6.7% gain as firms rushed shipments to the United States, the key market for Chinese products, before U.S. President-elect Donald Trump takes office on Jan. 20 with a threat of slapping stiff tariffs on imports from China.

Imports are expected to show a smaller drop than a 3.9% dip the previous month, probably because supply managers in China tried to secure technology products before the new U.S. administration imposes tighter semiconductor export controls. As a result, China's December trade surplus is forecast to have widened to $99.80 billion from $97.44 billion in November.

The Merchandise Trade Balance is the difference in value between imported and exported goods. Data are denominated both in U.S. dollars and renminbi. A positive number indicates a surplus meaning that more goods were exported than imported.

Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they also affect currency values in foreign exchange markets. However, the foreign exchange impact is muted here given that the currency is pegged to a basket of currencies and its value is determined daily by the government.

China's growth stems from its exports to the industrialized world. And in turn, global growth is dependent upon Chinese growth, especially since the financial woes of 2008.

Merchandise trade statistics are compiled and published by Customs General Administration (CGA) on a monthly basis. Preliminary estimates are available about 13 days after the reference month with details available within 25 days. Since 1980, the compilation of Customs statistics follows the concepts and definitions of the International Merchandise Trade Statistics: Concepts and Definitions. Data are released for total imports and exports in the Chinese currency and the U.S. dollar. There are five main categories each for primary and manufactured goods. Detailed information is available by category, destination country, foreign enterprises and domestic region to name a few. Geographically, the data covers the customs territory of the mainland China and excludes Hong Kong, Macao and Taiwan.