In line with the slowing Chinese economy, China's trade sector has been buffeted by lacklustre foreign and domestic demand in the past year, raising concerns among policymakers.
Chinese trade data
Imports vs Exports in the month of March.
- Exports -15% in March, poll saw +12%
- Imports -12.7% in March, poll saw -11.7%
- March trade balance $3.08 billion, below poll's $45.35 billion
China's export growth contracted 15 percent in March from a year earlier in a surprise drop that will exacerbate concerns about the slackening Chinese economy.
Analysts had expected exports to rise 12% in March on a yearly basis.
In a sign of soft domestic demand, imports into the world's second-biggest economy also shrunk 12.7% last month compared with a year ago, data from the General Administration of Customs showed.
That compared with a Reuters poll forecast for a 11.7% drop in imports.
"The slump in the exports figure is mainly due to the weak global demand, while the appreciation in dollars against other currencies in the past quarter was also negative for China's exports," said Nie Wen, a strategist at Hwabao Trust in Shanghai.
"More stimulus measures are needed in the future."
The trade performance left China with a trade surplus of $3.1 billion last month, much smaller than forecasts for a $45.4 billion trade gap.
In line with the slowing Chinese economy, China's trade sector has been buffeted by lacklustre foreign and domestic demand in the past year, raising concerns among policymakers.
Chinese vice premier Wang Yang was quoted by Xinhua state news agency as saying earlier this month that authorities must act to arrest China's export slowdown lest it further dampens economic growth.
Wang was quoted as saying that local governments should offer "preferential policy support" and encourage more private investment in the export sector.
Tepid growth in the trade sector could hurt jobs, which the government wants to protect for fear that widespread unemployment could fuel social discontent and trigger unrest.
So far, China's labour market appears to be holding up well, despite signs that economic growth is steadily grinding to its lowest in a quarter of a century of around 7%. Data on growth in the first quarter will be released on Wednesday.
China expanded grew its trade sector by 3.4% in 2014, according to government data, missing the government's growth target of 7.5% by more than half.
Taking that disappointing outcome into account, the government has lowered its growth target for 2015 combined imports and exports to around 6%.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}