CHINESE EXPORTS TO U.S. SANK LAST MONTH

» China’s 2018 trade surplus with the United States surged to a record $323.3 billion, but exports contracted in December as the delayed impact of President Donald Trump’s tariff hikes started to hurt demand.

Exports to the United States in 2018 rose 11.3 percent to $478.4 billion despite Trump’s punitive duties in a fight over Chinese technology ambitions, customs data showed Monday. Imports of American goods rose just 0.7 percent over 2017, reflecting Beijing’s retaliatory tariffs and encouragement to importers to buy more from non-U.S. suppliers.

In December, Chinese exports to the United States that had held up through much of the year fell

3.5 percent from a year earlier to $40.3 billion. Sales to the U.S. market had kept growing by double digits in previous months as Chinese exporters rushed to fill orders. But forecasters said American orders would slump once the full impact of Trump’s penalties hit.

The slowdown adds to pressure on Beijing to resolve the battle with Trump at a time when the ruling Communist Party also is trying to reverse an economic slowdown.

Mexico president declares gains in fight against fuel theft.

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CITY» President Andres Manuel Lopez Obrador stopped short Monday of declaring victory over Mexico’s fuel theft scourge, but said the government was making progress amid frustration over gas shortages.

Long lines continued at gas stations in many parts of the country, but Lopez Obrador asked for patience and said things would soon be getting back to normal.

Security patrols had prevented any new illegal taps since late Friday in an important pipeline that brings gasoline from the Gulf coast to Mexico City, he said at his neardaily morning news conference.

Lower expenses and taxes send Citigroup’s profits higher.

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» Citigroup said Monday its profits rose in the last three months of 2018, helped by a lower tax rate and lower expenses, which offset a drop in bond trading revenue.

Citi said it earned $4.31 billion in the last three months of 2018, or $1.64 per share. On an adjusted basis, the earnings rose 9 percent.

The results beat analysts’ estimates of $1.55 per share, according to FactSet.

In the fourth quarter of 2017, Citi reported an $18.89 billion net loss. The loss was mostly an accounting adjustment, caused by the impact of the then-new tax law which required Citi to write off billions of dollars of what are known as tax-deferred assets.

Volkswagen to build electric vehicles at Tennessee plant.

German automaker Volkswagen said Monday its factory in Tennessee will be the focus of an $800 million investment in the company’s manufacturing of electric vehicles in North America, a sign of a growing push into the electric car market by European companies.

Volkswagen made a couple of announcements that it will expand its plant in Chattanooga and create 1,000 jobs there as the factory gears up for electric vehicle production beginning in 2022. The company issued a news release and disclosed the expansion at the North American International Auto Show in Detroit. — Denver Post wire services