China's exports surprised the market when they recorded a 1.1% decline in October from a year earlier, the lowest reading since February, which was affected by global trade tensions.
Official customs data showed that exports from the country declined, a sharp contrast to the 8.3% growth in September and far below the 3.0% increase expected in a Reuters poll.
China's imports grew only 1.0%, much slower than the 7.4% growth in the previous month and below the 3.2% estimate.
The export decline was driven by the uncertainty of the US-China trade relations that have been tense recently.
Trade tensions flared up again in early October when US President Donald Trump threatened 100% tariffs on Chinese goods due to dissatisfaction with Beijing's expanded export controls on rare earths.
China's economy is currently under pressure as its factory output data showed weak momentum and manufacturers reported a sharp drop in foreign orders.
Although China recorded a trade surplus of around $90.07 billion in October, it was still below expectations of $95.6 billion, indicating that the slowdown in export growth is starting to have an impact on the trade imbalance.
Analysts believe that China now needs to rely more on domestic demand and the expansion of new markets to offset the decline in exports to traditional markets.
Going forward, China is expected to increase its focus on imports and domestic consumption and strengthen economic stimulation to offset the challenges of declining exports.
