The milestone, prompted by increasing sales of meat, dairy and pine logs, was achieved for each month of the quarter, according to Statistics New Zealand (SNZ) data released yesterday.
New Zealand's exports to China leapt 32% to $2.3 billion and imports rose 2.8% to $1.8 billion, while our $2.2 billion exports to Australia were down 7.3% and our imports from Australia were down 5.3% at $1.5 billion.
ASB economist Christina Leung expects China will remain a key support for New Zealand's export growth, given its increasing protein needs as its middle class expands.
''However, offsetting this in the near term will be the effects of the drought, which we expect will weigh on dairy exports over the coming months,'' she cautioned.
The trade surplus last month was $718 million, almost double the $373 million forecast, while the seasonally adjusted trade balance for the quarter to March was a $52 million surplus, which followed a $59 million deficit in the quarter to December.
Exports to China have more than tripled since the signing of a free-trade agreement in 2008, while it is the largest source of foreign students and one of the fastest-growing sources of tourists, BusinessDay reported.
Overall, milk powder, butter and cheese led the increase in the March quarter, with values up 3.5% and quantities up 3.6%.
Echoing a cautionary tone, Westpac economist Nathan Penny said the March trade balance, up from $127 million in February to $189 million for March, increased more than expected because of temporarily weak imports.
''This improvement may continue for another month or two before the drought begins to weigh on commodity export volumes and as the Canterbury rebuild increasingly adds to demand for imports.
''Trade deficits will persist from that point,'' Mr Penny said.
SNZ industry and labour statistics manager Louise Holmes-Oliver said 20% of goods exported from New Zealand went to China in the March 2013 quarter, compared to 15% in the corresponding quarter last year.
NZ exports and imports, the quarter to March
Exports
China - up 32%, or $554 million, to $2.3 billion
Australia - down 7.3%, or $170 million, to $2.2 billion
United States - up 10%, or $107 million, to $1.2 billion
Imports
China - up 2.8%, or $48 million, to $1.8 billion
Australia - down 5.3%, or $85 million, to $1.5 billion
United States - down 14%, or $1367 million, to $1 billion
Source: Statistics New Zealand
