China's Exports Surge Amid Trade Tensions: What It Means for Global Markets

Significant Growth in Exports

Bangkok: In March, China's exports experienced a remarkable increase of 12.4% compared to the same month last year, as businesses hurried to avoid the impending rise in tariffs imposed by the US government under President Donald Trump, according to a report released on Monday.

Conversely, imports saw a decline of 4.3%, as reported by the customs administration.

For the first quarter of the year, exports from the world's second-largest economy rose by 5.8% year-on-year, while imports dropped by 7%.

In March, China's trade surplus with the United States reached $27.6 billion, with exports to the US increasing by 4.5%. The total surplus for the first quarter with the US stood at $76.6 billion.

Currently, China faces tariffs of 145% on most of its exports to the United States due to the latest updates in Trump's trade policies.

Interestingly, the most significant export growth was observed with Southeast Asian nations, where exports surged nearly 17% in March compared to the previous year. Exports to Africa also saw an increase of over 11%.

Chinese President Xi Jinping embarked on a trip to Vietnam on Monday, part of a regional tour that includes Malaysia and Cambodia, aimed at strengthening trade relationships with other Asian countries that are also confronting potential high tariffs. Notably, Trump postponed the enforcement of these tariffs by 90 days last week.

In March, China's exports to Vietnam rose nearly 17% year-on-year, while imports from Vietnam decreased by 2.7%.

Although Xi's visit was likely scheduled earlier, it has taken on added importance in light of the ongoing trade conflict between Washington and Beijing.

A spokesperson for the customs administration, Lyu Daliang, acknowledged the 'complex and severe external situation' facing China but reassured that the country would not be overwhelmed. He emphasized China's diverse export markets and its vast domestic market.

When questioned about the decline in imports, he noted that China has maintained its position as the world's second-largest importer for 16 consecutive years, increasing its share of global imports from approximately 8% to 10.5%.

"Currently and in the future, there is significant potential for import growth in China, and the expansive Chinese market presents a tremendous opportunity for the global economy," he stated.