China\u2019s exports slowed significantly in March, seeing a 2.5 percent increase in goods sent to the rest of the world as the country instead saw imports rise their fastest in more than four years.<\/p>\n
The sourcing superpower\u2019s exports totaled $321 billion during the month, according to China<\/a>\u2019s General Administration of Customs. The export growth marks a six-month low for China, with elevated energy prices<\/a> stemming from the war in Iran likely weighing on foreign demand for goods.<\/p>\n More from WWD<\/p>\n Outbound shipments to the U.S. declining 26.5 percent to $29.4 billion, widening from an 11 percent annual decline in January and February. This was likely due to the heavy front-loading of goods from China last March ahead of the Liberation Day<\/a> tariff announcement.<\/p>\n The global export figures missed Reuters-polled analysts\u2019 median estimates for 8.6 percent growth, and represent a significant slowdown from the combined 21.8 percent surge<\/a> in the first two months of the year.<\/p>\n Imports grew by 27.8 percent to $269.9 billion over the same period, leading to a monthly trade surplus of $51.1 billion. The import figures sharply surpassed Reuters projections of an 11.2 percent increase and were the biggest individual jump since November 2021.<\/p>\n China\u2019s customs data was released the day before a report from the Financial Times said that the country demanded Mediterranean Shipping Company (MSC) and Maersk to relinquish operations of Panama\u2019s Balboa and Crist\u00f3bal ports immediately.<\/p>\n The Panamanian government named both ocean carrier giants<\/a> as the operators of the Panama Canal-adjacent ports after the country\u2019s Supreme Court ruled Hong Kong-based conglomerate CK Hutchison\u2019s contract to run the twin gateways was unconstitutional.<\/p>\n According to FT, China\u2019s National Development and Reform Commission (NDRC) summoned the companies to a meeting early last month, where they insisted the shipping firms pull out of the Panama ports.<\/p>\n At the meeting, MSC and Maersk<\/a> representatives were told not to \u201cengage in illegal activities that harm the interests of Chinese companies, and to uphold commercial ethics and international rules,\u201d the report said.<\/p>\n That meeting was purportedly held the same day the country\u2019s Transport Ministry hosted talks with them<\/a>, expressing concern over supply chain stability in the wake of the halting of traffic at the Strait of Hormuz.<\/p>\n Maersk CEO Vincent Clerc attended a meeting with NDRC officials in Beijing on March 20, FT said, while MSC president Diego Aponte has been communicating with the regulator through written correspondence.<\/p>\n Story Continues <\/p>\n The FT report followed an order from China\u2019s State Council on April 7 signed by Premier Li Qiang, which empowers Beijing to more forcefully respond to foreign regulatory actions deemed harmful to Chinese interests.<\/p>\n The legislation targets \u201cundue extraterritorial jurisdiction\u201d by foreign governments, essentially expanding the Chinese government\u2019s authority to impose retaliatory measures like asset freezes, fines, trade bans against entities and individuals deemed harmful to China\u2019s interests.<\/p>\n China has appeared to take measures against Panama in recent weeks, having detained dozens of ships<\/a> at its ports for inspection, prompting criticism from U.S. officials and further escalating tensions between the parties.<\/p>\n China\u2019s relationship with Panama has been under strain since President Donald Trump returned to office last January. The U.S. president has sought to rid the Panama Canal and the wider Latin America region from any potential growing Chinese influence.<\/p>\n In the months following Trump\u2019s inauguration, MSC and U.S. hedge fund BlackRock put in an offer to buy<\/a> the two Panama ports from CK Hutchison in a package deal that would have transferred ownership of 43 terminals for $22.8 billion. That deal drew the ire of China, which held it up via an antitrust probe and sought for state-owned Cosco Shipping to be included.<\/p>\n Panama\u2019s Supreme Court ruling ultimately derailed the transfer, as CK Hutchison no longer controlled the Balboa and Crist\u00f3bal ports.<\/p>\n MSC and Maersk will temporarily operate both ports for 18 months. Before that expiration date, the Panama Maritime Authority will host another open tender process to grant two separate firms long-term contracts to run the ports.<\/p>\n CK Hutchison has taken both Panama and Maersk to arbitration<\/a> over claims that it was illegally pushed out of the contract, noting that the country unlawfully seized documents, property and equipment from the company in the process.<\/p>\n