China’s exports to the United States slumped 27% in September compared with a year earlier, even as its overall global shipments recorded the strongest growth in six months, official data showed Monday.

According to customs figures, China’s worldwide exports rose 8.3% year-on-year to $328.5 billion, beating economists’ expectations and improving sharply from August’s 4.4% growth. Imports also rose 7.4%, recovering from a modest 1.3% increase the previous month, though weak domestic demand and a deepening real estate downturn continue to cloud the outlook.

Exports to the United States have now declined for six consecutive months, following a 33% drop in August, as trade tensions between Beijing and Washington intensify.

The renewed strain comes amid an escalating tariff dispute between the two economic powers. U.S. President Donald Trump has threatened to impose an additional 100% tariff on Chinese goods and introduce new export controls on “critical” software. Beijing retaliated by announcing new port fees on American ships and expanding export restrictions on lithium-ion batteries, rare earths, and related technologies.

The growing friction has cast doubt on a potential meeting between Trump and Chinese President Xi Jinping later this month, underscoring the limited progress toward a comprehensive trade deal.

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Despite the U.S. slump, China’s exports to other regions surged — shipments to Southeast Asia rose 15.6%, while exports to Latin America and Africa jumped 15% and 56%, respectively.

“China’s exports continue to show resilience given the low costs and limited alternatives globally, despite higher tariffs,” said Gary Ng, senior economist at Natixis.

Analysts say China’s strategy to diversify export markets is helping offset losses from the U.S., but ongoing policy headwinds and geopolitical tensions remain major risks for trade growth.

Source: AP