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


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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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