China trade data points to accelerated supply chain relocation despite rebound in March exports

Exports from foreign manufacturers in China declined by 16.3 per cent in the first quarter, compared to the same period last year, detailed customs data shows

The fall is in contrast to China’s overall exports, which rose by 0.5 per cent, year on year, in the first quarter

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A major player behind processing trade exports is Taiwanese multinational electronics contract manufacturer Foxconn. Photo: EPA-EFE

Published: 11:00pm, 21 Apr 2023Updated: 9:06am, 22 Apr 2023

Despite a surprising surge in overall exports in March, a supply chain relocation away from China might still be accelerating as shipments from foreign-invested companies dwindled in the first quarter, according to detailed customs data.

Exports from foreign manufacturers declined by 16.3 per cent in the first quarter, compared to the same period last year, the data showed.

The decline was mostly driven by falling shipments from the so-called processing trade, which involves importing all or part of the raw materials and re‑exporting the finished products after processing or assembly by enterprises within the country.

Major products exported under the category include smartphones, computers and integrated circuits, all of which continued to fall in March – in contrast to overall export which rose by 0.5 per cent in the first quarter and 14.8 per cent in March, year on year – though the decline was also compounded by dwindling global demand.

The value of smartphone exports dropped by 31.9 per cent in March, compared with a year ago, to US$8.48 billion, which was the lowest in 19 months, the data released on Tuesday showed.

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