Chinese exports fell in October for the first time in eight months, according to official data published on Friday, against a backdrop of rising trade tensions in the weeks before the meeting between Chinese President Xi Jinping and his American counterpart, Donald Trump.
Shipments decreased 1.1% year-on-yearbelow Bloomberg’s forecast, which predicted an increase of 2.9%.
Imports in the same month increased by 1.0%, according to the General Administration of Customs of China. This figure was well below that of September and the 2.7% increase estimated in Bloomberg’s forecast.
China and the United States reached a detente in their trade war after the meeting between Xi and Trump in South Korea at the end of October.
This marked a precarious pause in months of mutual retaliation between the two economic and technological powers, as the leaders agreed to suspend a series of measures for a year.
Last month, Beijing announced new restrictions on exports of rare earth technologies, a sector it dominates and is crucial for defense and automakers.
Trump responded by threatening an additional 100% tariff on Chinese goods.
However, that warning was canceled after Xi and Trump met last month in South Korear, and the American president described their first meeting since 2019 as a “great success.”
Washington halved the overall tariff on Chinese products, leaving it at 10%, while Beijing eased restrictions on rare earth exports, which also brought relief to European companies.
China also removed additional tariffs on American agricultural products, including soybeans, critical for American farmers who make up a key part of Trump’s electoral base.
Chinese imports from the United States fell 11.6% month-on-month in Octoberaccording to customs data, while shipments in the opposite direction increased by 1.8%.
Chinese exporters had been “advancing their trade operations to avoid high tariffs in the United States,” he noted. Zhiwei Zhangeconomist at Pinpoint Asset Management, in a report.
The country’s shipments to the United States increased 8.6% in September compared to August, after a month-on-month drop of 11.8% compared to July.
“It seems that the initial boost in exports finally faded in October. Since the trade war has been suspended for a year, exports are likely to normalize,” Zhang said.
However, he warned: “Now that export dynamism weakens, China needs to rely more on domestic demand.”
(With information from AFP)
