China's October Trade Data Shows Sixth Consecutive Month of Export Decline, Unexpected Import Growth

Exports to US and EU continue to contract drastically as imports mark first month of growth since September 2022, narrowing overall trade surplus.

China's exports fell for a sixth consecutive month in October 2023, dropping by 6.4% from a year earlier to US$274.8 billion. The decline was primarily due to price effects, with increased manufacturing capacity and levelling off in demand encouraging exporters to reduce prices.
Exports to the United States dropped by 8.2% year on year, marking the fifteenth consecutive month of contractions, while exports to the European Union dropped to a 12.6% year-on-year decline.
China's imports, however, experienced a surprise growth of 3% last month to US$218.3 billion, up from a 6.2% decline in September, exceeding predictions of a 4.7% drop. This ended 11 consecutive months of declines, suggesting improvements in domestic demand.
The rise in imports resulted in China’s overall trade surplus narrowing to US$56.5 billion in October, down from US$77.71 billion in September.
Analysts anticipate China may need to introduce further stimulus measures to ensure the economy hits its annual growth target of around 5%, as ongoing headwinds persist from weak global demand and the domestic property sector.