BEIJING — China’s export growth weakened in March as global energy disruptions and shifting trade conditions affected demand, even as technology-related shipments continued to show strength.
Customs data released on Tuesday showed that exports from China, the world’s second-largest economy, rose 2.5% year on year in March, marking a five-month low and a sharp slowdown from the 21.8% increase recorded in the January to February period. The figure also came in below market expectations of 8.3% growth.
Imports increased 27.8%, the strongest performance since November 2021, compared with a 19.8% rise in the previous two-month period and expectations of 11.2% growth.
The March data reflects the first major test of whether strong demand for artificial intelligence related products, including chips and servers, could offset broader weaknesses in global trade conditions linked to rising energy costs and supply chain disruptions. Higher transport and fuel expenses have also affected purchasing power in several markets.
Energy import data showed a decline in natural gas shipments, which fell 10.7% year on year, the lowest level since October 2022. Crude oil imports also dropped 2.8%, with reports of logistical delays affecting shipments passing through key maritime routes. Analysts noted that higher energy costs have added pressure to global trade flows.
Despite the slowdown, China’s technology exports continued to support overall trade performance. Demand for semiconductors and AI related infrastructure remained strong, with global buyers increasing orders for memory chips and server equipment.
China’s refined oil product exports rose 20.5% month on month to 4.6 million metric tons, reflecting shifts in energy trade patterns.
Analysts also noted that seasonal factors, including the timing of the Lunar New Year holiday, affected production and export activity in labor intensive industries such as textiles, garments, toys, and furniture. A high comparison base from the previous year also contributed to the slower growth rate.
Trade data from South Korea, often used as an indicator of Chinese demand trends, showed a 62.4% rise in exports to China in March, driven largely by strong semiconductor shipments supported by higher memory prices and sustained demand for AI related infrastructure.
China recorded a trade surplus of $51.13 billion in March, down from higher levels earlier in the year. While exports continue to support economic activity, rising input costs and global trade uncertainties have affected overall sentiment.
Economists noted that China’s manufacturing sector remains export oriented but is increasingly influenced by fluctuations in energy markets and global supply chain conditions. Some analysts also suggested that cost pressures could shift buyer behavior toward lower cost suppliers in certain markets.
Looking ahead, trade relations and global demand trends are expected to remain key factors influencing China’s export performance, alongside continued growth in high technology sectors such as artificial intelligence and advanced manufacturing.
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