Chinese exports unexpectedly decreased by 1.1% in October. This is the first time such a situation has been observed in the last eight months.
The main reason for the decline is attributed to a reduction of more than 25% in exports to the US. At the same time, exports to other countries grew by 3.1%, but this was not enough to compensate for losses in the US market.
Economists note that earlier, Chinese companies tried to ship their goods to the US in advance to avoid high tariffs. By October, however, this effect had ended.
Additionally, a weakening has also been observed in other countries: exports to the European Union grew by only 1%. Analysts had expected exports to rise by 3%, but this decline was unexpected.
Nevertheless, the trade balance reached a record level of $965 billion, and in October amounted to $90.1 billion. At the same time, imports rose by only 1%.
A strong yuan made Chinese goods more expensive abroad, which affected the situation. Experts warn that if global demand continues to fall, China's economy may slow down further by the end of the year.
The current quarter is expected to be the slowest growth period since the end of 2022. Nevertheless, Goldman Sachs experts predict that by 2026, Chinese exports may strengthen again due to new markets.
