Following the escalation of trade tensions and looming tariffs by U.S. President Donald Trump, it is expected that China's exports accelerated in March as manufacturers hurried to send out shipments. The predicted 4.4% year-on-year increase in outbound shipments for March, compared to a 2.3% rise in January-February, indicates this trend. Conversely, imports are anticipated to have continued their decline by 2.0% after an unexpected 8.4% contraction at the beginning of the year.

Despite some positive signs such as increased manufacturing activity and improved retail sales, China's economy faces challenges like rising unemployment and deflation. The ongoing trade war with the U.S. poses a significant threat to economic growth. While U.S.-China trade tensions intensify, both countries have imposed hefty tariffs on each other, potentially reducing the bilateral trade of goods by up to 80%.

In response to the tariff threats, various countries including Germany and South Korea have seen a surge in exports to the U.S. Consequently, China's trade surplus for March is projected to be $77.00 billion, a decrease from the previous month but in line with the same period last year. Financial institutions like Goldman Sachs and Citi have revised down their GDP growth forecasts for China due to the impact of tariffs, showcasing the economic uncertainty that looms ahead.