China’s March Trade Balance: Surplus shrinks despite sharp jump in exports


China’s Trade Balance for March, in Chinese Yuan terms, came in at CNY601.01 billion versus CNY618.09 billion expected and CNY810.3 billion last.

The exports jumped by a whopping 23.4% in the reported period vs. 9.5% expected and 0.9% previous.

The country’s imports increased by 6.1% vs. 2.9% prior. The market forecast was for a 7.1% rise.

Meanwhile China’s exports grew by 8.4% in the January-March period a year earlier, and imports grew by 0.2% over the same period.

In US Dollar terms,

China reported a decline in the trade surplus even as exports unexpectedly jumped during the March period.

Trade Balance came in at +88.19B versus +39.2B expected and +116.8B previous.

Exports (YoY): 14.8% vs. -9.4% exp. and -6.8% prior.

Imports (YoY): -1.4% vs. -5.0% exp. and -10.2% last.

A spokesperson from China Customs said that “China’s trade development will face greater difficulties and challenges.”

Additional quotes

“China customs spokesperson: weakening external demand, geopolitical factors will bring tests to China’s trade development.”

“Exports of NEV, lithium battery and solar products drive up China’s overall exports.”

FX implications

AUD/USD  keeps gains on mixed Chinese trade figures. The spot is adding 0.31% on the day, trading at 0.6710 as of writing.

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