China exports weaken sharply in March, imports surge to four‑year high

(Sharecast News) - China's export growth slowed sharply in March, falling to a six‑month low as the conflict in the Middle East weighed on the global demand outlook, while imports recorded their strongest rise in more than four years. Data released by the General Administration of Customs on Tuesday showed that exports had risen 2.5% year‑on‑year in US dollar terms, well below expectations for an 8.6% increase and easing from the combined 21.8% jump seen in January and February.

Imports, on the other hand, surged 27.8% on the year, the fastest pace since November 2021, beating forecasts for an 11.2% rise and accelerating from the 19.8% growth recorded across the first two months of the year. China publishes combined January-February figures due to Lunar New Year distortions.

Crude oil imports fell nearly 2.8% by volume in March and 4.4% in dollar terms, while natural gas imports dropped 10.6% to 8.18m tonnes, the lowest level since October 2022.

China's trade surplus declined to $51.1bn in March, down from the prior month's trade balance of $213.6bn to hit its lowest level since February 2023.

Exports to the US fell 26.5% year‑on‑year in March, extending a run of double‑digit declines since trade tensions escalated last April, while imports from the US edged 1% higher. Trade with the Middle East also weakened after two months of growth, said customs spokesman Lyu Daliang as he called for joint efforts to stabilise and de‑escalate the conflict.

Elsewhere, rare earth imports more than tripled in value in March, while soybean imports rose 20% by volume.

For the first quarter, China's foreign trade grew 15% year-on-year as the total value of goods imports and exports hit RMB 11.84trn (£1.28trn), with exports up 11.9% at RMB 6.85trn (£741.29bn), and imports 19.6% higher at RMB 4.99trn (£540.06bn).





Reporting by Iain Gilbert at Sharecast.com