By Abiodun Abdullai
China's exports declined in October for the first time in eight months, signalling renewed pressure on the world's second-largest economy as trade tensions with the United States resurface.
Official data from the General Administration of Customs on Friday showed that shipments fell 1.1% year-on-year, missing Bloomberg's forecast of a 2.9% increase. Imports, meanwhile, edged up 1.0%, below expectations of 2.7%, highlighting sluggish global demand and softer domestic consumption.
The trade slowdown came weeks before the meeting between Chinese President Xi Jinping and U.S. President Donald Trump in South Korea, where both leaders agreed to pause new trade measures for one year — a temporary relief following months of retaliatory actions between the two economies.
Last month, Beijing introduced fresh restrictions on rare earth technology exports, a critical component in defence and automobile manufacturing. In response, Washington had threatened to impose additional 100% tariffs on Chinese goods before both sides reached a truce.
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As part of the agreement, the U.S. halved its blanket tariff on Chinese products to 10%, while Beijing eased export controls and lifted extra tariffs on U.S. agricultural imports such as soybeans.
Despite the diplomatic thaw, analysts warn that export momentum remains fragile.
Zhiwei Zhang, Chief Economist at Pinpoint Asset Management, noted that Chinese exporters had been frontloading shipments in previous months to beat potential tariffs.
"It seems the frontloading finally faded in October," Zhang said. "Now that export momentum weakens, China needs to rely more on domestic demand to sustain growth."
The recent data underscores China's delicate balancing act between maintaining export competitiveness and managing domestic economic stability amid an uncertain global environment.
