China Says Its Exports to the US Fell 35% in May

China's exports to the United States fell 35 percent in May from a year earlier, new customs data show, adding to pressure on the world's second-largest economy as a new round of trade talks with Washington was due to start later Monday in London.
China's total exports rose 4.8 percent last month, slowing from an 8.1 percent year-on-year increase in April. Imports declined 3.4 percent year-on-year, leaving a trade surplus of $103.2 billion.
China exported $28.8 billion to the United States in May, compared with $44 billion a year earlier. Its imports from the US fell to $10.8 billion, the report said.
Still, exports to Southeast Asia and the European Union remained robust, growing 14.8 percent and 12 percent, year-on-year. Exports to Thailand, Vietnam, and Indonesia were sharply higher, and exports to Germany jumped more than 12 percent.
“The acceleration of exports to other economies has helped China’s exports to remain relatively buoyant in the face of the trade war,” Lynne Song of ING Economics said in a commentary.
Many businesses had rushed orders earlier in the year to try to beat higher tariffs. Once new import duties took effect, shipments slowed. Exports will likely rebound somewhat in June thanks to a 90-day suspension of most of the tariffs China and the US imposed on each other in their escalating trade war, Zichun Huang of Capital Economics said in a report.
“But with tariffs likely to remain elevated and Chinese manufacturers facing broader constraints on their ability to sustain rapid gains in global market share, we think export growth will slow further by year-end,” Huang said.
Despite the tariffs truce, rancor between Beijing and Washington has persisted, with angry exchanges over advanced semiconductors, “rare earths” that are vital to many industries, and visas for Chinese students at American universities.
The round of negotiations due to take place later Monday in London follows a phone call last week between Trump and Chinese leader Xi Jinping.
It's unclear if that exchange will lead to any significant progress during the talks this week.
Speaking to reporters on Air Force One on Friday, Trump said Xi had agreed to restart exports of rare earth minerals and magnets to the US, which China had slowed, threatening a range of US manufacturers that relied on the critical materials.
There was no immediate confirmation from China. The trade data released on Monday showed a nearly 21 percent plunge in the value of China's rare earths exports in January to May compared with a year earlier. In terms of volume, those exports rose 2.3 percent.
Similar trends can be seen in exports of other products and commodities, such as shoes, ceramics, and cell phones, as slowing demand causes prices to fall.
Other data released Monday highlighted the pressure on China's own economy from slowing exports. Imports have faltered since manufacturers import many of the components and materials needed for the goods they assemble for the world.
At the same time, China's own domestic markets are suffering. The government reported that consumer prices fell 0.1 percent in May, evidence of sluggish demand. The persisting deflation partly reflects lower food prices, economists said.
Producer price deflation was worse, contracting 3.3 percent in May, its lowest level in almost two years, after falling 2.7 percent in April.
Tags: Keywords:Related Articles
Trump Says Tariffs on Chinese Goods Will Total 55%
The US will provide China “what was agreed to,” including allowing Chinese students to attend American colleges and universities.China Says Its Exports to the US Fell 35% in May
Exports will likely rebound somewhat in June thanks to a 90-day suspension of most of the tariffs China and the US imposed on each other.China Seeks United Front With Latin America in Countering Trump's Trade War
China has become a reliable trade and development partner for many, in contrast to the uncertainty and instability of Trump’s America.US Agrees to Drop Its 145% Tariff Rate on China to 30%
China agreed to lower its rate on US goods by the same amount to 10 percent.US Makes 'Substantial Progress' in China Tariff Talks, Scott Bessent Says
There was no immediate comment from the Chinese representatives at the talks.No Breakthroughs Yet in US-China Tariff Talks, But Trump Touts 'Great Progress'
In its editorial, Xinhua said, “Talks should never be a pretext for continued coercion or extortion."Top US Officials Will Meet with Chinese Delegation in Switzerland in First Major Talks of Trade War
A government spokesperson said China would not "sacrifice its principles or global equity or justice in seeking any agreement.”China Shrugs Off Threat of US Tariffs to Economy, Says It has Tools to Protect Jobs
The trade war between the world’s two largest economies has the potential to bring on a recession in the US.China Dismisses Claims of Ongoing Tariff Talks with US as Groundless
“Any claims about the progress of China-US trade negotiations are as groundless as trying to catch the wind," a spokesman said.China's Exports Jump 12.4% in March as Bigger US Tariff Hikes Loom
“Savvy US importers likely saw tariff hikes coming in April onward and frontloaded imports,” ING Economics said.The Latest
Pegadaian Sees Highest Growth in South and Central Kalimantan
The region has recorded total outstanding loans of Rp 7.8 trillion, making it the second-best performing region nationwide.Indonesia Evacuates 101 Nationals from Iran Amid Escalating Regional Conflict
Indonesia evacuates 101 people from Iran, including citizens and embassy staff, amid rising regional tensions.USS Nimitz Sails Past Indonesia as Iran-Israel Conflict Escalates
The US aircraft carrier USS Nimitz transited Indonesia's Malacca Strait on June 17, likely heading to the Middle East.Pegadaian Semarang Regional Office Signs Legal Cooperation Agreement with Prosecutors
Prosecutors will assist with issuing warning letters, summonses, and debt collection efforts targeting delinquent customers.Millions Flex for International Yoga Day
From the Himalayas to the beaches, Indians joined mass yoga sessions as PM Modi led global celebrations for International Yoga Day.Most Popular
