BEIJING, April 13 (Reuters) – China’s export engine likely slowed in March as buyers chasing an AI-fuelled future confront the hard reality of war https://www.reuters.com/world/iran/ in the Middle East, which has sparked ‌an energy shock and revived market anxiety of past Gulf conflicts.

Exports from the world’s second-largest economy are ‌forecast to have risen 8.6% year-on-year in dollar terms, according to a Reuters poll – a marked cooling from the blistering 21.8% growth ​logged in January and February.

March marks the first real test of whether enthusiasm for artificial intelligence – and the chips and servers it demands -could offset gloom unleashed by the global energy shock after Iran’s closure of the Strait of Hormuz, the strategic waterway for the world’s 20% oil and gas flows.

China roared into 2026 with outbound shipments far outstripping ‌forecasts, powered by tech exports, raising ⁠the prospect it could smash last year’s record $1.2 trillion trade surplus. The Iran war raises doubts about that trajectory.

Even China, long criticised by trading partners for subsidy-backed, cut-price manufacturing, ⁠is not insulated from the hit to buyers’ purchasing power as fuel and transport costs rise.

Still, Chinese producers may yet gain ground as buyers seek cheaper options, said Fred Neumann, HSBC’s chief Asia economist. Decades of commodity stockpiling have also ​helped ​blunt the impact of raw-material shocks on factory gate prices, ​he said.

Economists were divided on how Chinese ‌producers fared in the first full month under the shadow of war. Mizuho Securities had the highest forecast, projecting a 24% rise, ahead of Macquarie Group, which expected a 17% increase. At the other end of the scale, Citigroup forecast growth of just 3%.

A high base is also likely to be a drag, after Chinese factories rushed shipments a year earlier L1N3QS044 to beat U.S. President Donald Trump’s April 2 “Liberation Day” tariff deadline.

China’s imports ‌likely increased 11.2% in March, according to the poll, up ​from 19.8% in the January-February period.

South Korea’s exports to China – a ​bellwether for Chinese demand – rose 62.4% in March, ​led by a 151.4% surge in global semiconductor shipments on higher memory prices and ‌robust AI-driven server demand.

March factory activity data out ​of China showed goods exports ​continued to support growth, but the war in Iran weighed on sentiment as commodity prices rose sharply, lifting input costs.

China’s trade surplus is forecast to narrow to $108 billion in March from $214 billion over January ​and February.