China’s March trade data showed a sharp divergence between imports and exports, with demand holding up domestically while external momentum disappointed expectations. In dollar terms, exports rose just 2.5% year-on-year in March, well below the Reuters poll forecast of 8.6%, signalling a loss of momentum in external demand. In contrast, imports surged 27.8% y/y, far exceeding expectations of an 11.2% increase, pointing to strong domestic demand and higher commodity-related inflows. As a result, China’s trade surplus narrowed significantly to $51.13 billion, undershooting expectations of $108.2 billion and marking a ... (full story)