The September export and import data in China falls drastically.
The trade dispute between the U.S. and China has continued for more than a year, impairing trade between both countries.
Exports slid by 3.2 percent, while imports have fallen by 8.5 percent in September on a year-on-year basis. The trade balance was found to be at $39.65 billion, while in August it showed a surplus of $34.8 billion.
Economists had expected exports to drop by 3 percent, while imports were expected to fall by 5.2 percent for the same duration. The trade surplus was forecast at $33.3 billion according to estimates.
Exports witnessed a major fall as shipments to the U.S. have dropped. It has slumped by 22 percent on a year-on-year basis. In August the decline was 16 percent, and it has worsened in September, according to data from the Customs General Administration on Monday.
The trade war saw a small ray of hope when Friday saw a mini U.S.-China deal reached between the two countries. However, the deal has not been very conclusive and doubts still continue to linger about the outcome of the partial deal.
According to talks, the U.S. President has agreed to postpone tariff increase on $250 billion worth of goods. In return, China has agreed to purchase agricultural products from Washington to goods worth more than $40,000.
The first phase of the trade deal is to be signed between the two presidents in mid-November. Lower data makes it a necessity for China to agree to a trade deal, as exports from China have dropped almost one-fifth, affected by tariffs.
Shipments from China to the European Union have also gone down by 0.12 percent on a year-on-year basis. This is much lower than shipments in August which were at 3.2 percent.
Exports to other South-eastern Asian countries have increased by 9.7 percent from the same period last year.