The growth of China’s exports decreased to a three-month low in May due to a decline in shipments to the United States caused by tariffs imposed by President Donald Trump, as reported by customs data released on Monday. Although exports rose by 4.8% year-on-year, this was lower than the 8.1% increase in April, with a significant drop of almost 12% month-on-month for shipments to the US. This data was released just prior to another round of trade talks between US and Chinese officials in London. In May, China exported goods worth $28.8 billion to the US, down from $33 billion in April. Analysts suggest that the higher trade figures in March and April were due to exporters rushing to ship goods ahead of anticipated tariff hikes. Additionally, imports from the US also decreased by 7.4% to $10.8 billion.
In other news, a phone call between Trump and China’s President Xi Jinping signaled a thaw in relations, with Trump describing the conversation as “very positive” for both countries. This call is set against the backdrop of a 90-day tariff truce that came into effect last month, pausing a trade war between the world’s two largest economies. Trump has reduced his tariffs on Chinese goods temporarily, and China has lowered its taxes on US goods.
Meanwhile, Beijing is preparing for potential economic fallout, as US policymakers have expressed frustration with China’s delay in approving export licenses for rare earths and other elements critical to high-tech, defense, and clean energy sectors. Additionally, producer and consumer prices have dropped according to government data. To offset the economic impact, Beijing has implemented new stimulus measures, including interest rate cuts.
Source: https://www.dw.com/en/us-trade-tensions-hit-china-s-export-growth/a-72839612?maca=en-rss-en-all-1573-rdf
