Economic Buzz: China?s trade surplus shrinks sharply as imports surge

China?s trade balance dropped more than expected in March, mainly due to a sharp rise in imports driven by strong domestic demand for artificial intelligence chips and infrastructure. Export growth also slowed as the U.S.-Israel war in Iran disrupted global shipping and demand.

China recorded a trade surplus of $51.13 billion in March, according to customs data. This was much lower than expectations of $107.50 billion and down significantly from the previous month?s $213.62 billion surplus.

Exports grew 2.5% year-on-year in March, missing forecasts of 8.3%. This marked the slowest pace of export growth since early 2025.

In contrast, imports jumped 27.8% during the month, far exceeding expectations of an 11.1% increase.

The surge in imports was partly anticipated after South Korea?s exports ? often seen as an indicator of Chinese demand ? rose sharply by 62.4% in March.

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