Beijing - (Saba):
Chinese exports rose more than expected in March, as companies continued to pre-load shipments to avoid US tariffs.
According to data released Monday by the Chinese General Administration of Customs, exports in China jumped 12.4% year-on-year last month, exceeding expectations for a 4.4% increase.
The increase in Chinese exports last month is the largest since October of last year.
On the other hand, imports from the world's second-largest economy fell 4.3% year-on-year, compared to expectations for a 2% decline.
During the first two months of 2025, Chinese exports slowed more than expected, growing by 2.3% year-on-year, the slowest pace since April of last year. Imports fell 8.4% year-on-year, the largest decline since mid-2023.
China's trade surplus in March fell to $102.6 billion. For his part, Xiwei Zhang, president and chief economist at Pinpoint Asset Management, said in statements reported by CNBC that Chinese exports are expected to weaken further in the coming months amid the surge in US tariffs. He added, "I expect short-term disruption to supply chains and potential shortages in the US, which could push inflation higher." He continued, "Trade policies remain highly uncertain, compounding the challenges for companies looking to adjust their supply chains and capital expenditure plans. Even if companies decide to relocate their supply chains, it will take time to build factories."
The Chinese leadership has set an ambitious growth target of around 5% this year, a target seen as difficult to achieve given the escalating trade war and continued weakness in domestic consumption.
China is expected to release its first-quarter GDP data on Wednesday, amid pledges from policymakers to unveil more measures to boost domestic demand and offset the trade shock.
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