Financial Wire

China's Balance of Trade Plunges in March Despite Import Surge

-- China's balance of trade saw a surplus of $51.13 billion in March, according to data from Customs released Tuesday.

The figure was weaker compared with a $213.62 billion surplus in February and missed analsyts' estimates of $107.5 billion during the month, according to a report by Investing.com.

In local currency terms, the balance of trade plunged 4.8% year over year, analysts from ING said in a note Tuesday.

The plunge in local currency terms could also impact China's GDP data, due for release Thursday, ING said.

Exports jumped 2.5% year over year to $321 billion during the month, Customs said. The growth rate missed a forecast of 8.3%, according to Investing.com. It is also slower compared with the 21.8% surge in the January-February period.

Exports destined for the U.S. fell 14.6% year over year, but is expected to ease in the coming months, analysts from ING said.

"With the drag from the US expected to ease-assuming no new tariff shocks, which cannot be fully ruled out-external demand should remain an important driver of growth this year," ING said.

Imports soared 27.8% year over year to $269.9 billion during the month, exceeding expectations, and up from a 19.8% rise seen in the January-February period, according to multiple media reports.

The surge is attributable to higher technology product prices, which led to "stunning export growth" across the rest of Asia-Pacific, ING analysts said.

Chinese semiconductor imports jumped 11% year on year year-to-date by volume and 45% year-to-date by value, according to the analysts.

The figure has not taken into account the impact of the Iran war, as crude oil imports increased 8.9% year on year, year-to-date in volume terms but were down 4.7% year to date in value terms, ING said.

Higher energy prices could accelerate imports further in the coming months, the bank said.

The balance of trade for the quarter reached $264.3 billion.

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