Geopolitical Tensions Loom as China’s Exports Spike 12.5%, Trade Surplus Reaches $58 Billion

China’s March 2025 trade data revealed a 12.5% surge in exports, fueled by robust demand for manufactured goods, while imports fell by 1.9%, extending a worrying trend. The widening surplus may further strain China’s trade relationships with Western powers, particularly as U.S. and EU trade representatives have recently criticized what they view as unfair export advantages.

The export growth highlights China’s competitive edge in global markets, but the import decline points to lingering domestic weakness. With consumer spending still muted and industrial activity slowing, economists question whether export-led growth alone can sustain China’s economy. Meanwhile, rising trade barriers abroad could pose risks to future expansion.