China's exports tumble 7.5% in March and imports also fall as demand slows

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Official customs data show China’s exports contracted in March after growing in the first two months of the year

HONG KONG — China’s exports contracted in March after growing in the first two months of the year, underscoring the uneven nature of the country's recovery from the pandemic.

Customs data released Friday show exports declined 7.5% in March from a year earlier, while imports slipped 1.9%. Both figures fell short of estimates.

In the January-February period, exports rose 7.1% year-on-year while imports climbed 3.5%.

China, the world’s second-largest economy, posted a trade surplus of $58.55 billion in March. The surplus in the first two months of the year was $125 billion.

The decline in exports partly reflected a higher base of comparison with March 2023, when exports jumped 14.8% as the economy reopened after languishing under strict COVID-19 controls.

The economy has slowed in the medium-term partly due to a crisis in the property industry brought on by a crackdown on excessive borrowing. Weakness in exports would be a further drag on growth.

“We think export volumes will rise more slowly this year, given that consumer spending in advanced economies is cooling and the tailwind from last years sharp drop in export prices is fading,” Zichun Huang, a China economist at Capital Economics, said in a note.

But she said imports would probably gain momentum as higher government spending boosts demand.

An official survey of factory purchasing managers in March showed manufacturing activity expanding for the first time in six months. The survey showed an expansion in new export orders for the first time in nearly a year.

China has set a target of around 5% for economic growth this year, an ambition that will