China's export engine slowed sharply in March as war in the Middle East triggered shocks to energy and transportation costs, hurting global demand and exposing the risks in Beijing's strategy of leaning on manufacturing to sustain growth.
The world's second-largest economy surged into 2026 on red-hot AI-fueled electronics demand, raising expectations it could eclipse last year's $1.2 trillion record trade surplus. But the conflict has disrupted global growth, leaving China especially vulnerable as ?it has relied on foreign demand to offset a prolonged inability to revive consumption at home.
Outbound shipments grew by just 2.5% in March, ?customs data showed ?on Tuesday, a five-month low, and far below the 21.8% surge seen over the January-February period. Economists had forecast ?growth of 8.3% in a Reuters poll.
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