China’s exports posted a 14.8% year-on-year increase in March, according to data released by the country’s customs bureau. This increase has been surprising for many economic observers, who had expected a pullback in exports. The increase is the first recorded since September 2022 and is partly explained by the weak base effect last year due to the COVID-19 outbreaks that forced many companies to close and restrict operations at ports across the country. The increase in exports is also due to factories running at full capacity, which has allowed them to catch up with orders accumulated in recent months.
However, experts expect this respite in exports to be short-lived due to the threat of recession in the United States and Europe, combined with strong inflation, which is contributing to weakening international demand for Chinese products. In addition, trade transactions with the United States and the European Union decreased in the last month, while they increased with Russia.
On the other hand, imports from China contracted by 1.4%, according to the customs administration. In recent months, sanitary restrictions in China had weighed down the operation of factories until December, when the authorities lifted the bulk of these measures. China’s economic recovery continues after overcoming severe restrictions against COVID-19.