China’s exports dropped in October, hit by a 25% fall in shipments to the United States, according to government data released Friday. Overall, China’s global exports fell 1.1% from a year earlier, marking the weakest performance since February. This follows an 8.3% increase in September.
Imports rose only 1% in October, much lower than the 7.4% growth recorded in September, showing weak domestic demand. China’s shipments to the U.S. have dropped by double digits for seven straight months, though China has shifted focus to markets like Southeast Asia and Africa.
China trade slowdown deepens
Economists said the decline was partly because October 2024 had a strong 12.6% export growth, the fastest in more than two years, making comparisons tougher, as per the report by AP. Property slump and low spending remain a worry — Analysts warned that China’s property sector downturn and weak domestic consumption continue to hurt overall trade.
During their late October meeting in South Korea, Donald Trump and Xi Jinping agreed to lower tariffs and delay new port fees on each other’s vessels. As part of the deal, China paused export controls on rare earths for one year and agreed to buy more U.S. soybeans and farm goods, while the U.S. eased sanctions on Chinese firms.
Shipping volumes hit record low
Goldman Sachs said China’s export volumes could grow 5%-6% yearly, helping the economy expand and gain global market share, as stated by AP. Economists Leah Fahy and Zichun Huang said tariff cuts from the new U.S.-China deal might give “a small boost to exports,” but the effects will show only in the last quarter of this year.
Wei Li of BNP Paribas Securities (China) said a “meaningful” export boost to the U.S. will likely start in early 2026 and accelerate by mid-year. At the China International Import Expo in Shanghai, Premier Li Qiang said China will “embrace free markets and free trade” and criticized trade restrictions that harm developing nations.
According to The Kobeissi Letter on X, container shipping traffic from China to the U.S. is collapsing. The number of cargo ships from China to the U.S. dropped to 41, the lowest since February 2024, and down 42% in the last three weeks. Total cargo volume has halved to around 300,000 TEUs, which is the lowest since at least January 2024. Combined cargo volumes from all major Asian exporters fell to about 700,000 TEUs, the lowest since February 2024, signaling a wider Asia-to-U.S. trade slowdownAnalysts say the latest data confirms that U.S.-China trade is rapidly slowing, showing that tensions and weak demand are heavily affecting global shipping.
FAQs
Q1. Why did China’s exports to the U.S. drop in October?
China’s exports to the U.S. fell because of weak demand, ongoing trade tensions, and a slowdown in global shipping traffic.
Q2. How much has China-to-U.S. shipping fallen recently?
Cargo ship traffic from China to the U.S. has plunged 42% in the last three weeks, reaching its lowest level since early 2024.
Source Name : Economic Times