China’s trade surplus is likely to shrink this year due to rising energy prices, according to Zhiwei Zhang of Pinpoint Asset Management. He notes markets already expected March export growth to slow, with both Lunar New Year timing and the Middle East conflict weighing on trade data. Higher energy costs cannot be fully passed through to foreign buyers, which will compress China’s surplus. However, Zhang adds that China’s global trade share excluding energy is still likely to rise, supported by i

China’s trade surplus is likely to shrink this year due to rising energy prices, according to Zhiwei Zhang of Pinpoint Asset Management. He notes markets already expected March export growth to slow, with both Lunar New Year timing and the Middle East conflict weighing on trade data. Higher energy costs cannot be fully passed through to foreign buyers, which will compress China’s surplus. However, Zhang adds that China’s global trade share excluding energy is still likely to rise, supported by its scale and manufacturing efficiency.