China’s Exports Slow in May Despite Agreement with Washington and Expanding Trade Surplus
Chinese exports experienced a slowdown in growth during May, increasing by 4.8% year-on-year to reach $316.1 billion, compared to an 8.1% growth in April, according to the National Bureau of Statistics.
The data attributed this decline primarily to a sharp drop in exports to the United States, which fell by 34.52%, following a 21% decrease in the previous month, due to the ongoing trade war between the two nations.
Beijing and Washington reached a temporary agreement lasting 90 days on May 12, which called for the cancellation of most mutual tariffs imposed since April 2; however, the effects of this agreement have not yet been reflected in May’s results.
Economic analysts expressed caution regarding the temporary agreement’s ability to bring about a real change in trade relations between the two powers, suggesting that the sustainability of trade exchanges will depend on whether the agreement continues beyond the temporary ceasefire period.
Conversely, Chinese exports to the Association of Southeast Asian Nations (ASEAN) saw a growth of 14.84%, while exports to the European Union rose by 12.02%, reflecting China’s diversification of trade partners.
Imports dropped by 3.4% year-on-year, leading to an expansion of the country’s trade surplus, which reached $103.2 billion in May.
China and the United States resumed their trade talks on Monday in London, following a previous meeting in Geneva last month, in an effort to extend the agreed temporary trade truce.
