Q1 foreign trade signals strengthening recovery

China's foreign trade gathered steam in the first quarter. The country's economic recovery boosted domestic demand, driving import growth of raw materials.

Zheng Yuesheng, Director, Dept. of Statistics, General Admin. of Customs, said, "The signs of economic rebound have become more evident. It provided a favorable environment for increasing imports."

The country's imports surged 14.1 percent in March, despite falling global commodity prices. Iron ore imports jumped 14.4 percent in March from February, feeding steel mills that have been producing in excess of 2 million tonnes of steel per day since mid-February, in anticipation of a further domestic demand boost.

Meanwhile exports rose 10 percent following two months of particularly strong export growth. The spokesman says the momentum will continue this year.

Zheng Yuesheng, Director, Dept. of Statistics, General Admin. of Customs, said, "Latest survey with 2000 foreign trade enterprises showed new export orders, export confidence in March, are higher than February. It indicates exports are likely to continue the upturn."

China's export sector is facing significant demand headwinds from debt-constrained demands from the EU and the US, the two largest foreign markets. The government aims to boost domestic demand to weather the risks from the still-weak external environment.