China’s Exports Decline Unexpectedly in October
China’s exports fell by 1.1% year-on-year in October, marking the first drop since February and a sharp reversal after an 8.3% rise in September. This contraction exceeded analysts’ expectations for growth and highlighted weakening global demand and trade disruptions.
Regional Trends and Causes
Exports to the United States plummeted by over 25%, while sales to the European Union and Southeast Asia grew by only 0.9% and 11% respectively. Sluggish overseas orders combined with weak domestic demand – where imports rose just 1% – signal broader headwinds for China’s trade-reliant economy.
Implications for China’s Economic Outlook
The downturn casts a shadow on China’s growth prospects as it moves away from export-led expansion and seeks to strengthen internal consumption. Policymakers may respond with support measures for manufacturers and exporters. Analysts caution that the export slump could spill into early 2026 unless global demand recovers.
