China's March Exports and Imports Drop Amid Weak Domestic and International Demand

Li Chen
13 Apr, 2024
Hong Kong

China's exports and imports dropped in March but advanced in the first quarter as global trade patterns evolved and became more fragmented. 

Exports in March decreased 7.5% to $279.7 billion and imports fell 1.9% to $221.2 billion, the General Administration of Customs reported late Friday. 

Exports declined from a higher base in March last year, after they increased 14.8% from a year ago to a record high in the month at $315.6 billion. 

Trade surplus in March declined to $58.6 billion from $78.4billion and fell from January-February 2024 surplus of $125.2 billion. 

For the first three months of 2024, exports increased 1.5% to $807.50 billion, rebounding from a contraction of 1.2% in the final quarter of 2023. 

China's exports are still facing headwinds from rising geopolitical tension, persistent weakness in the yen, and a growing negative perception of China in the ASEAN region. 

The Chinese government is intensifying its efforts to support the growth of exports of electric vehicles, lithium-ion batteries, and renewable energy products, but together they still account for less than 5% of China's exports. 

As the Chinese government shifts its focus to large state-owned companies, private companies are shifting their production to Vietnam, Mexico, Malaysia, and Hungary. 

In the first quarter, China's exports contracted to the U.S. by 1.3%, to the European Union by 5.7%, to Australia by 8.9%, and to South Korea by 9.8%. 

Overall shipments to ASEAN countries increased by 4.1%, after an 18.5% jump in Vietnam offset the declines of 7.2% in Singapore and 14.4% in the Philippines. 

In yuan terms, China's exports in March increased 4.9% to 5.74 trillion yuan, and imports rose 5% to 4.43 trillion yuan, according to customs data. 

China's international trade crossed 10 trillion yuan for the first time in the first quarter, and total imports and exports rose to 5% in the period, with the growth rate climbing to a six-quarter high, deputy head Wang Lingjun said at the press conference after the release of data on Friday. 

For over a decade, China has been investing and expanding its trade ties around the world. 

China's international trade with Belt and Road Initiative countries increased 5.5% to 4.82 trillion yuan, making it the largest trading block. 

International trade with the U.S., European Union, Japan, and South Korea accounts for about 3.3 trillion yuan, or 33.4% of the total.