China’s export growth slowed sharply in May, with exports to the United States falling nearly 12 percent from April, ahead of a new round of US-China trade talks set to take place in London.
According to customs data released today (Monday), overall export growth slowed to 4.8 percent year-on-year, down from 8.1 percent in April. Shipments to the US dropped from $33 billion in April to $28.8 billion in May, reports dw.com
Analysts attribute the strong trade numbers in March and April to a rush by Chinese exporters to ship goods ahead of anticipated tariff hikes imposed by US President Donald Trump. Imports from the US also declined 7.4 percent to $10.8 billion.
The slowdown comes amid a 90-day tariff truce, during which Trump temporarily reduced tariffs on Chinese goods from 145 percent to 30 percent, and China lowered tariffs on US products from 125 percent to 10 percent. Trump described a recent phone call with President Xi Jinping as “very good,” signaling possible progress in negotiations.
Despite the truce, tensions remain as US officials criticize China’s delay in approving export licenses for rare earths, vital for technology, defense, and clean energy industries.
Meanwhile, signs of economic strain are emerging in China. Producer prices and consumer prices both declined, prompting Beijing to launch new stimulus measures in May, including interest rate cuts, to support the slowing economy.
