China’s Exports Climb 4.8% in May as Shipments to the US Fall Nearly 10%
China’s exports rose 4.8% in May, but U.S. shipments fell nearly 10%. Imports also declined by 3.4%, resulting in a trade surplus of $103.2 billion. While exports to Southeast Asia and the EU remained strong, concerns persist about potential slowdowns amid ongoing trade tensions with the U.S.
China’s exports experienced a 4.8% increase in May compared to the previous year, but this surge comes with a significant drawback: shipments to the United States plunged nearly 10%. This data, released just hours prior to a new round of trade discussions between China and the U.S., signals complex dynamics at play in international trade. Import figures, meanwhile, saw a year-on-year decline of 3.4%, finishing with a notable trade surplus of $103.2 billion.
In terms of specifics, China exported $28.8 billion in goods to the U.S. during May, while imports from the States fell by 7.4%, totaling $10.8 billion. The data indicates that despite struggles with U.S. trade, China’s exports to other regions remain strong, with Southeast Asia seeing a 14.8% increase and the European Union a 12% increase, both year-on-year.
Lynne Song from ING Economics commented on the situation, noting, “The acceleration of exports to other economies has helped China’s exports remain relatively buoyant in the face of the trade war.” However, the overall trade environment cooled significantly in May after an 8.1% rise in global exports the month prior, as businesses pushed to complete orders ahead of anticipated tariff increases.
Looking ahead, there is optimism that export figures might experience some uplift in June due to a temporary truce with tariffs between China and the U.S. Nonetheless, Zichun Huang from Capital Economics suggests that ongoing elevated tariffs and other challenges for Chinese manufacturers may lead to a further slowdown in export growth by the end of the year.
Despite the temporary pause in tariffs, tensions between Beijing and Washington show no signs of easing. Issues remain contentious, including advanced semiconductor technology, essential rare earth materials, and regulations for Chinese students in the U.S. The latest negotiations are set to unfold later Monday in London, following recent talks between President Trump and Chinese leader Xi Jinping.
Further insights from the data released indicate that the Chinese economy is feeling the pinch from not only a decrease in exports but also from strained domestic markets. Consumer prices have dropped by 0.1% in May, a sign of sluggish consumer demand, largely influenced by falling food prices. At the same time, producer prices have seen a more severe deflation, shrinking by 3.3% in May, marking the steepest drop in nearly two years after a 2.7% decline witnessed in April.
In summary, while China’s exports saw an increase of 4.8% in May overall, the significant decline in shipments to the U.S. poses challenges amidst ongoing trade tensions. Growth in exports to Southeast Asia and the EU offers some relief, yet concerns loom over possible slowdowns due to heightened tariffs and internal market pressures.
Original Source: apnews.com
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