China's export growth slowed to just 2.5% in March compared to the previous year, according to recent economic data.
The slowdown follows the escalation of the war in Iran, which has disrupted key maritime trade routes.
Rising logistics costs
The closure of the Strait of Hormuz has significantly increased the cost of raw materials. This disruption forced many Chinese manufacturers to absorb higher expenses, squeezing factory profits throughout the month.
Market analysts report that the volatility in the Middle East is directly impacting global supply chain stability. The increased shipping and material costs are now weighing heavily on China's manufacturing sector.
While trade volumes remain positive, the margin of growth has sharply declined from previous periods. Factories are currently struggling to maintain profitability as logistics expenses continue to climb.
