China exports fall in October, first decline since 2020.

Beijing -- China's exports shrank in October, the first such decline since mid-2020, customs authorities said Monday, as a domestic slowdown and the threat of global recession hit international trade.

Exports fell 0.3 percent year-on-year in October, according to the General Administration of Customs, a steep drop from September's 5.7 percent increase and well below analysts' expectations.

Year-on-year imports were down 0.7 percent in October, negative for the first time since March this year and down from September's 0.3 percent growth.

The slowdown in trade comes as global demand for Chinese products weakens with energy prices soaring and the United States facing the threat of recession.

Sporadic Covid-19 lockdowns have also hurt consumer enthusiasm and business confidence in the world's second-largest economy.

Analysts surveyed by Bloomberg forecast export growth of 4.3 percent in October, but expected only 0.1 percent growth in imports amid weakening demand at home.

"The recent decline in export volumes appears to reflect a reversal in the pandemic-era surge in global demand for Chinese goods," Capital Economics analyst Zichun Huang said in a note on Monday.

Import volumes are "likely to continue weakening given the challenging domestic outlook", Huang said.

- Domestic challenges -

China's factory activity shrank in October, official data showed last week, which the National Bureau of Statistics blamed on virus outbreaks last month.

Factory activity has been in contraction territory for six months of the year so far, as sweeping Covid restrictions paralysed...