China’s exports slow sharply

China’s export growth slowed to 2.5% in March, a five-month low, as the Middle East war drove up energy and shipping costs. (finance.yahoo.com) China’s customs data showed March exports missed a Reuters poll forecast of 8.3% growth and slowed sharply from a 21.8% jump in January and February. Imports rose 27.8%, the fastest pace since November 2021. (cnbc.com) Shipments to the United States fell 26.5% from a year earlier to $29.4 billion in March, according to China’s General Administration of Customs. The monthly trade bulletin also showed China had entered March after double-digit gains in the first two months of 2026. (lbcgroup.tv) (english.customs.gov.cn) The March figures were the first full-month trade test after the Iran war disrupted flows through the Strait of Hormuz, a route that carries about 20 million barrels a day of oil and roughly one-quarter of global seaborne oil trade. China’s manufacturers entered that shock after an export run fueled by artificial intelligence servers, chips, and other electronics. (iea.org) (finance.yahoo.com) Economists told Reuters before the data that the war risked wiping out the earlier technology-led export burst. South Korea’s exports to China, often used as a read on Chinese demand, rose 62.4% in March, helped by a 151.4% jump in global semiconductor shipments. (money.usnews.com) (finance.yahoo.com) China’s economy has leaned heavily on trade even as tensions with Washington and tariffs increased. Net exports accounted for about one-third of China’s economy last year, according to CNBC’s summary of official and market data. (cnbc.com) Customs vice minister Wang Jun said on April 14 that oil prices had seen “fierce fluctuation” and the trade environment had become “complex and severe.” Zhiwei Zhang of Pinpoint Asset Management said the Middle East conflict likely hit export demand through a weaker global outlook. (cnbc.com) Other economists said China may still hold up better than some export rivals if buyers shift toward lower-cost suppliers. Fred Neumann of HSBC said Chinese producers could gain share as customers look for cheaper goods, while Dan Wang of Eurasia Group said China’s oil stocks cover well over 120 days of net imports. (finance.yahoo.com) (cnbc.com) The next test comes with China’s first-quarter growth data and April trade numbers, which will show whether March was a one-month shock or the start of a broader wartime slowdown. (msn.com)