China's Exports to U.S. Drop 13% in October as Global Economy Slows - Modern Distribution Management

China’s Exports to U.S. Drop 13% in October as Global Economy Slows

An economic slowdown within the next 12 months is looking increasingly likely, according to economists.
Chinese container with the flag of the People's Republic of China in the port. The concept of Chinese import and export.3D render

Many economists expect a considerable U.S. economic slowdown within the next year, and recent trends across the global economy indicate a downturn is coming sooner rather than later. The Wall Street Journal reported Nov. 7 that China’s exports to the rest of the world unexpectedly shrank in October ­— most notably, Chinese exports to the U.S. dropped 13%. The WSJ cited data from China’s General Administration of Customs in that reporting.

The WSJ highlighted a slew of other economic trends concerning the U.S. and the rest of the world:

  • The U.S. labor market is showing signs of cooling as the Federal Reserve hikes interest rates in response to high inflation, a potential indicator of a looming recession.
  • Growth is already slowing in the U.S., Europe and China simultaneously, but the International Monetary Fund warned last month that “the worst is yet to come” — the IMF expects global gross domestic product to expand 3.2% this year before regressing to 2.7% in 2023.
  • Exports from China declined 0.3% last month compared to a year earlier. That was far below expectations of economists polled by the Journal, who forecast that exports would increase 4% year-over-year.
  • South Korea and Taiwan were among other Asian nations to experience a slide in exports. South Korea’s Trade Ministry said exports dropped 5.7% in October year-over-year.
  • China saw significant decreases in exports of products including home appliances and medical supplies, while South Korea’s exports of memory chips, petrochemicals and computers declined.
  • The cost of shipping containers around the world has fallen in recent months. Prices for moving products from Asia to the U.S West Coast last were 87% lower year-over-year. The Journal also noted that ocean carriers are canceling “dozens of sailings on the world’s busiest routes during what is normally peak season.”

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.