MNI BRIEF: China Exports Surge In March On ASEAN Demand

China's exports performed a very strong rebound in March on quickly demands from major partners especially the ASEAN countries, while imports were slightly inferior, data released by China Customs on Thursday showed.

Exports jumped by 14.8% y/y in March, which is highly up from the previous 1.3% y/y fall and well beat the market consensus calling for a 7.2% y/y drop. The increase, led by machinery and labor-intensive products, was driven by both the rising demands from external world as well as the quickly recovered production domestically. The exports in the first quarter has totaled to USD821.8 billion, or 0.5% over the same period last year - converting from the 6.8% y/y fall registered in Jan-Feb period. The ASEAN countries have ranked the first place purchasing Chinese goods - exports to ASEAN rose 18.6% in Q1 while those to the EU and the US falling 7.1% and 17.0% respectively.

Imports registered a 1.4% y/y decrease in March, cooling down from the previous 4.2% y/y growth but narrower than the market consensus of 6.5% y/y drop. Imports in the first three months amounted to USD617.12 bln, behind the same period last year by 7.1%. The trade surplus over the Jan-Mar period was USD204.7 billion on surging exports.

At current stage, we should see that China's economy has great potential and sufficient vitality, it is believed that the positive momentum of foreign trade is expected to be continued along with the recovery of China's economy. However, the sluggish growth of major economies as well as risks such as protectionism and geopolitics will bring more uncertainties and difficulties, China's foreign trade is still facing great challenges, the Customs warned.