Martin Pollard | Reuters BEIJING — China’s exports fell 0.3 percent in October from a year earlier, missing Reuters expectations for a 4.3 percent rise. The decline in US dollar terms last month marked a sharp drop from a 5.7% annual increase in September and the first year-on-year decline since May 2020, Refinitiv Eikon data showed. Imports fell in October by 0.7% in US dollar terms, also missing expectations for slight growth of 0.1% and below a 0.3% rise in September. China’s trade with countries and regions was only available in yuan terms on an annual basis as of Monday morning. The US remained China’s largest single-country trading partner, the data showed. For the year to October, Chinese exports to the US slowed to a pace of 8.4%, from 10.1% recorded in September. US imports rose 1.7% in October, faster than the previous month’s 1.3% pace.
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In addition to ongoing Covid checks, last month marked the twice-a-decade Chinese Communist Party congress in which President Xi Jinping consolidated his power. Last week, Barclays cut its forecast for China’s economic growth next year on expectations that falling demand from the US and the EU would cause China’s exports to fall by at least 2%. The prospects of an economic recession in the EU and the US have increased in recent months. Several major US technology companies have recently announced layoffs and other cost-cutting measures. Aggressive interest rate hikes by the US Federal Reserve strengthened the dollar against other currencies. The yuan fell nearly 3 percent against the U.S. dollar in October, according to Refinitiv Eikon. In yuan terms, exports rose 7 percent and imports 6.8 percent, customs data released Monday showed.
