Middle East Conflict Impacts: China's March Exports Slow to 5-Month Low

Central News Agency (Shanghai, April 14) — China's General Administration of Customs today released its March import and export trade value statistics. The latest data shows that, calculated in US dollars, China's March export value increased by 2.5% year-on-year, a significant slowdown, down 37.1 percentage points from February, reaching a 5-month low. The latest statistics from China's General Administration of Customs show that, calculated in US dollars, the total import and export trade value in March increased by 12.7% year-on-year. March export value increased by 2.5% year-on-year, down 37.1 percentage points from February, reaching a 5-month low; March import value increased by 27.8% year-on-year, up 14 percentage points from February. China's import of key commodities volume and value table shows that, calculated in US dollars, March crude oil import volume decreased by 2.78% year-on-year, and March natural gas import volume decreased by 10.64% year-on-year. Reuters reported on the 14th that China's March exports slowed significantly. China has long supported trade through subsidies and price reductions, which has drawn criticism from trade partners. The current Middle East conflict has led to a sharp rise in fuel and transportation costs, and China cannot completely avoid the impact of the conflict on buyers' purchasing power. Lü Daliang, spokesperson for China's General Administration of Customs and director of the Department of Statistical Analysis, responded this morning at a State Council Information Office press conference regarding the impact of the Middle East conflict on March imports and exports. Lü Daliang stated that the Hormuz Strait is a globally important channel for goods and energy. According to a UNCTAD report, the Hormuz Strait handles 25% of global seaborne oil trade, 19% of liquefied natural gas trade, 29% of liquefied petroleum gas trade, and 13% of chemical trade, making it a critical maritime transport channel. Lü Daliang pointed out that after the outbreak of the Middle East conflict, fuel prices rose sharply and remained high, and oil transportation costs also increased significantly. These factors are being transmitted through the supply chain, pushing up global commodity production and transportation costs, and the growth rate of global goods trade is expected to decline significantly. Regarding the significant growth in March import value, Lü Daliang believes this is due to China's proactive opening of its vast market, active expansion of imports, and strengthening of industrial cooperation for mutual benefit, allowing various countries to share in 'China's opportunities.' In the first quarter, ASEAN and the EU were major sources of imports, accounting for 14.8% and 9.1% respectively; imports from Africa grew by 14.6%.