China's Exports and Imports Beat October Forecasts

China's goods exports rose 35.2% in October compared to the previous year. The result beat the 33.5% forecast from analysts. However, the volume of foreign sales slowed down from the 36.3% growth observed in September.

Chinese imports grew 41.6% during the same period. The figure was higher than the 32% estimate and represented a jump from the 31% recorded in the previous month. The country's trade surplus fell to $105.3 billion, the lowest level since April.

Export performance is driven by demand for chips and equipment focused on artificial intelligence. Dependence on this sector exposes the Chinese economy to risks if the global expansion of technology loses momentum. Household consumption remains weak, with retail sales rising only 1.1% in September.

the Chinese government maintains moderate support for the economy to reach its annual growth target of 4.5% to 5%. Trading partners are pressuring Beijing for measures that stimulate domestic demand and balance the trade ledger. The European Union has set limits on the entry of Chinese hybrid vehicles starting in December.

Survey data show that new export and domestic market orders fell in October. Factory activity also showed an unexpected contraction last month. Global leaders are expected to discuss new trade measures at the APEC summit next week.