China's exports shrank unexpectedly in October, Beijing's official commerce data showed, dragged down by a sharp fall in shipments to the U.S. amid the trade battle with President Donald Trump.

Beijing's grip on rare earths processing is a major problem for the U.S. and its advanced manufacturing sector. But the drop in exports highlights Trump's substantial leverage over China, whose exporters—the engine of its economy—still rely heavily on American demand, despite Beijing's recent efforts to diversify its markets beyond the U.S., such as in Europe and Southeast Asia.

China Exports Data

There was a 25 percent drop in Chinese shipments to the U.S. during the month, according to the data released Friday. This was compounded by a 1.1 percent drop in China’s global exports in October comp

See Full Page