Chinese exports, imports fall significantly, beyond expectations

After showing signs of recovery at the start of the year, Chinese foreign trade slowed again in March, with exports falling by 7.5% compared to the same month last year, customs authorities said on Friday.

Exports fell to the equivalent of $280 billion, a larger decrease than analysts had expected.

Imports fell by 1.9% to $221 billion. Analysts had anticipated an increase in imports.

Chinese foreign trade has fallen with the United States and the European Union.

China's export-driven economy recorded a significant slump in exports overall last year, which fell by 4.6%. The world's second-largest economy also imported 5.5% less over the year as a whole. China's government is aiming for economic growth of around 5% in 2024.

Any weakening of the Chinese economy is viewed with concern by other countries but more positive signals from industry recently sparked hopes that the economic situation might improve. The purchasing managers' index for the manufacturing sector has been indicating a return to growth for some time.

Furthermore, China's foreign trade balance for January and February beat analysts' expectations. The value of Chinese exports rose by 7.1% year-on-year to the equivalent of $528 billion. Imports rose by 3.5% to around $125 billion.

Overall in the first quarter, China's imports and exports each rose by 1.5% compared to the same period last year. The statistics for China's trade with Russia also showed a positive balance for this period, with exports up 2.6% and imports up 7.3%.

Trade and the economy are likely to be areas of focus when German Chancellor Olaf Scholz travels to China on Sunday for a three-day visit.

Chinese trade with Germany has also fallen, with exports down 12.4% compared to the same month in 2023 and imports plummeting by 13.7%, measured in dollars.

Germany is trying to reduce its dependence on China in critical areas, a strategy questioned by Beijing.

While German imports and exports to and from China have fallen, many German companies operating in China depend on the Chinese market, particularly the automotive industry.