These efforts are necessary to strike an appropriate balance between the long-term risk to US national security and economic interests, as well as the immediate impact to the US nuclear industrial base, the US' Department of Energy said.
China's economy is feeling the heat from a tit-for-tat tariff dispute and showing signs of slowing that prompted the central bank on Sunday to loosen policy by cutting banks' reserve requirement ratio (RRR) for a fourth time this year.
The second round of tariffs that the Trump administration imposed on China came into effect only on September 24, so the increase in exports last month might have been the result of Chinese companies rushing to sell their products before the additional duties were added.
Chinese exports to the U.S. also rose by 14 percent while Chinese imports from America dropped 1.2 percent.
Beginning a year ago, the National Security Council led a review of China's efforts to obtain nuclear material, equipment and advanced technology from USA companies, government officials said in a conference call with reporters on October 11.
Exports rose 14.5 percent over a year earlier to $226.7 billion, up from August's 12.2 percent growth.
Communist officials have ordered companies to stop buying American soybeans - the biggest USA export to China - and find alternative suppliers and export markets for other goods.
China will remain on a monitoring list for currency manipulation because of its significant trade surplus with the US, the people said.
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"It's got to be more than a signal" from China, Mnuchin said.
"The United States can not ignore the national security implications of China's efforts to obtain nuclear technology outside of established processes of US-China civil nuclear cooperation", Energy Secretary Rick Perry said in a statement. That's significantly higher than the $196 billion recorded between January and September previous year. The Trump administration has also accused China of trying to undermine the president ahead of next month's congressional elections, something Beijing has denied. These would be the first direct talks since August, but with both sides digging in their heels, there are few hopes the leaders can secure a major breakthrough.
The trade feud has been fueled by USA accusations that China coerces foreign companies into handing over technology in return for access to the Chinese market, as well as by China's trade surplus with the U.S.
In a separate report released on Friday, the International Monetary Fund (IMF) cut its expectations for China's GDP growth by 0.2 per cent for 2019, citing the ongoing trade tensions.
Exports to the 28-nation European Union, China's biggest trading partner, rose 11.6 percent to $37.4 billion. It also slashed China's growth forecast for next year to 6.2 percent from 6.4 percent.
"Although Chinese manufacturing output continued to rise in September, the latest expansion was only marginal and the weakest recorded for almost a year", the survey said.
New export orders in September declined at their fastest pace since February 2016, according to the Caixin China General Manufacturing Purchasing Managers Index.
"The trade-oriented industries are still vulnerable to further escalation of the tariff war", HSBC analysts Julia Wang and Aakanksha Bhat said in a research report on Friday.