China’s Exports Fall as Global Slowdown Hurts Demand

China’s exports and imports unexpectedly fell in October, the first drop in both measures since May 2020, as soaring inflation and surging interest rates buffeted global demand.
Grim trade figures released in October highlight the challenge for policymakers in China as exports had been one of the few positives for the struggling economy. To further complicate the economic picture, China has instituted new COVID-19 restrictions that have disrupted output and consumption.
Export shipments in October shrank 0.3% from a year earlier, a marked turnaround from a 5.7% gain in September. It was the worst monthly performance since May 2020.
Analysts predict that global demand will remain frail, piling more pressure on the country’s manufacturing sector and threatening any meaningful economic re-emergence in the world’s second largest economy.
The weak export growth reflects flagging external demand, but supply disruptions due to COVID-19 curbs in China could not be discounted. Major brands have revised their production forecasts due to the restrictions. Apple said it expects lower-than-anticipated shipments of the iPhone 14 following a major production cut at a virus-impacted plant in China.
What does this mean for me? 

Low exports meant Chinese outbound shipments could not fully benefit from a further weakening in the yuan and the key year-end retail season.

Analysts believe exports will fall further over the coming quarters, with aggressive financial tightening by central banks set to drag down real incomes and likely push the global economy into a recession next year.