This archive report was first published on 14 October 2019.
China's economy continues to face challenges as its exports and imports contracted in September, with the country's trade war with the US showing no signs of abating.
According to customs data released on Monday, China's exports fell 3.2% in September compared to the same period last year, marking the largest decline since February. This decline is despite the US and China reaching a tentative agreement on the first phase of a trade deal, which was announced by US President Donald Trump on Friday.
Existing tariffs remain in place, and officials on both sides have stated that much more work needs to be done to resolve the trade dispute. The contraction in exports is a worrying sign for China's economy, which is already facing slowing global growth.
Analysts at Capital Economics noted that the decline in exports suggests that global demand softened in September, adding to the pressure from the US tariffs that went into effect in September.
China's imports, on the other hand, contracted for a fifth straight month, with a decline of 1.7% in September compared to the same period last year.
Despite the challenges facing China's economy, the country's trade ministry has stated that it is committed to opening up its markets and increasing imports to boost economic growth.
However, the ongoing trade war with the US is likely to continue to weigh on China's economy in the coming months, with many analysts predicting a further decline in exports and imports.
Related Topics: US President Donald Trump, Capital Economics, China tarrifs, US-China Trade Wars
