Customs data shows March rebound in foreign trade

China's foreign trade is showing signs of recovery as import and export volumes improved in March, according to customs data released on Tuesday.

Compared with an average 9.5 percent decline in January and February, foreign trade of goods was only down 0.8 percent year on year in March, totaling 2.45 trillion yuan (US$348 billion), according to the General Administration of Customs (GAC).

Specifically, exports declined 3.5 percent to 1.29 trillion yuan while imports increased 2.4 percent to 1.16 trillion yuan, reversing a trade deficit from the first two months.

For the first quarter, foreign trade of goods fell 6.4 percent to 6.57 trillion yuan year on year as the COVID-19 pandemic dealt a heavy blow to the global economy.

Exports dropped 11.4 percent to 3.33 trillion yuan and imports slipped 0.7 percent in the latest quarter, pulling the country's trade surplus down by 80.6 percent to just 98.33 billion yuan.

Bucking the downward trend, trade with countries involved in the Belt and Road Initiative generally experienced robust growth.

Li Kuiwen, an official with the GAC, said: “Increasing trade with countries along the Belt and Road, especially with ASEAN (Association of Southeast Asian Nations) played an important role in stabilizing China’s foreign trade.”

Foreign trade with countries along the Belt and Road increased 3.2 percent to 2.07 trillion yuan in the first quarter, 9.6 percent higher than overall growth, while that with ASEAN rose by 6.1 percent to 991.3 billion yuan, accounting for 15.1 percent in China’s foreign trade.

ASEAN thus replaced the European Union to become the largest bloc trade partner with China.

As Li noted: “Affected by Brexit on January 31, foreign trade with the European Union declined 10.4 percent to 875.9 billion yuan.”

Overseas shipments of mechanical and electrical products, which accounted for almost 60 percent of exports, dropped 11.5 percent during the quarter, while newly emerging industries such as cross-border e-commerce saw a 34.7 percent increase in foreign trade.

Compared with double-digit declines in export-oriented provinces like Guangdong and Jiangsu, foreign trade in China's central and western provinces only dipped 2.1 percent to 1.04 trillion yuan.

“As all-round opening-up accelerates, central and western China is playing a much more significant role in China’s foreign trade,” explained Li.

“The GAC will spare no effort to keep China’s foreign trade stable, and will work together with other departments to help foreign trade firms resume operation,” Li added.