China Trade Data Shows Signs of Economic Stabilization But Challenges Remain

China's exports and imports declined at a slower pace in September compared to August, suggesting some stabilization in the economy.

The trade data provides encouragement for Chinese authorities, but challenges persist including deflationary pressure, property crisis, and global slowdown.

Import contraction also slowed, resulting in a trade surplus of $77.71 billion in September.

Recent data including factory activity and retail sales has been more upbeat, though recovery not yet on solid footing.

Authorities considering additional stimulus like infrastructure spending, but more measures likely needed to bolster economic recovery in 2023.