China’s foreign sales surprisingly dropped last month, the first such case since February, 2017, which raises concerns over the strength of one of main growth factors for the economy, even considering fast escalation of trade conflict with the U.S. Import increase of March overtook forecasted figures, meaning home demand could be sufficiently brisk to compensate for any external loss.
Not an often occasion when China finishes a month with a trade deficit, which is also the first fall since February of the previous year.
The data on the condition of China’s trade comes after several weeks of mutual tariff threats between the two countries, caused by U.S. dissatisfaction with Beijing’s intellectual property policies, as well as huge bilateral trade surplus.
China’s foreign sales of March decreased by 2.7% compared to the same period of 2017, whereas economists predicted a 10.0% rise, they are also lower than February’s more-than-forecasted 44.5% surge, which by analysts’ views was much skewed by seasonal factors. However, the January-March quarter showed solid 14.1% growth of exports.