Trade data from China released on Monday has reflected the impact of the trade war on the world’s second biggest economy, as both exports and imports slowed more than forecast in September, raising the need for an immediate intervention.
China’s exports fell 3.2 percent year-on-year, the largest decline since February. Analysts had expected a 3 percent decline, following August’s 1 percent plunge, according to the bureau of statistics.
Total September imports also dropped by 8.5 percent after a 5.6 percent plummet in August, the lowest level since May. Economists had penciled in a 5.2 percent fall.
Accordingly, the trade surplus reached $39.65 billion last month, compared with a surplus of $34.84 billion in August and forecasts of $33.3 billion surplus.
Customs data also showed that China's exports to the United States decreased by 10.7 percent over the previous year in dollar terms from January to September, while U.S. imports fell by 26.4 percent during the same period.
Analysts believe that china's recovery amid slowing global growth may take some time, despite initial signs of an improvement in strained trade relations between the world's two largest economies.
Optimism spread in markets at the beginning of the week as President Donald Trump said U.S. and China agreed to the outlines of a partial deal that could be signed as early as next month.
The offshore yuan
resumed its advance for a fourth straight session on Monday to 7.0787 per
dollar, after hitting a high at 7.0504, the highest since September 16.