China’s export sector showed remarkable strength in March 2025, with official data revealing a 12.5% year-on-year increase, far exceeding analyst expectations. This surge signals a rebound in global demand, particularly from key markets like the U.S. and Europe. However, imports contracted for the second consecutive month, dropping by 1.9%, reflecting weaker domestic consumption and subdued economic activity within China.

Analysts attribute the export boom to competitive pricing, a weaker yuan, and recovering trade relationships. Meanwhile, the decline in imports highlights ongoing challenges in China’s domestic economy, including sluggish consumer spending and a slow recovery in the property sector. Policymakers may need to introduce further stimulus measures to bolster internal demand.

The trade surplus widened significantly to $58 billion, reinforcing China’s role as a global export powerhouse. Economists warn, however, that geopolitical tensions and potential trade barriers could impact future growth.