China's exports beat market expectations in September, offsetting the pressure of the looming tariff retaliation with the U.S.

On a year-on-year basis, China's exports hiked 8.3%, while imports jumped 7.4%, according to data from the Chinese customs on Monday.

The current exports and imports are higher than 4.4% and 1.3%, respectively, in August.

Analysts polled by Reuters predicted a 6% climb in exports and a 1.5% growth in imports.

Among major trading partners, the U.S. saw the biggest slump in exports, dropping 27%. On the other hand, exports in the E.U., ASEAN, Africa, and Latin America all grew.

With the trade truce with the U.S. about to end in November, both countries are announcing tariff hikes. The Chinese commerce ministry announced export restrictions on artificial diamond products, metals and rare earths beginning November, while President Donald Trump retorted by announcing an additional 100% tariff on Chinese goods, on top of the 30% tariff already imposed.

Semiconductors are among the products that posted huge export growth, jumping 33% during the month. The Shanghai and Hong Kong shares of Semiconductor Manufacturing International (HKG:0981, SHA:688981) or SMIC jumped by around 3% at the close of Monday's trade due to a positive outlook for China's semiconductor industry in light of looming tariff hikes.

Despite tariff pressures, Lynn Song, ING's chief economist for Greater China, said that there's still room for both countries to reconcile.

"Given the disruption seen during the peak of the trade war in April and May, and the language from policymakers in both countries, we believe that neither China nor the US wishes to return to mutually-damaging tit-for-tat escalations and retaliations," Song said.