Credited from: REUTERS
China's exports unexpectedly fell 1.1% in October, reflecting a notable downturn in trade performance that has raised concerns among investors about the broader economic impact of ongoing trade tensions with the United States. This decline reversed an 8.3% increase seen in September and came in below forecasts, which had predicted a 3% growth according to SCMP and Reuters.
The data also revealed that exports to the US shrank dramatically by 25.17% year-on-year as tariffs imposed by the Trump administration continued to affect demand. This trend signifies a substantial reliance on American buyers which China is trying to mitigate by diversifying its markets. In contrast, trade with other regions, including the European Union and Southeast Asian countries, showed minimal growth Reuters, Channel News Asia, and India Times.
Official data indicated that imports increased by 1% compared to a year earlier, a stark contrast to the 7.4% rise experienced in September. Analysts view this modest growth as indicative of persistent economic challenges within China, including weak domestic demand and a prolonged slump in the property sector Channel News Asia and India Times.
Recent negotiations between Chinese President Xi Jinping and US President Trump have led to an agreement to scale back parts of the trade dispute, which may provide some relief to Chinese exporters. This includes potential tariff reductions and commitments from China to purchase more US agricultural products Channel News Asia and India Times. Economists suggest that while these measures may stabilize exports in the short term, substantial improvements will be seen in the first half of next year Reuters and India Times.