China's exports climb 4.8% in May as shipments to U.S. fall nearly 10%
China's exports rose 4.8% in May from a year earlier, a bit lower than expected as shipments to the United States fell nearly 10%, according to customs figures released on Monday (June 9, 2025) just hours ahead of another round of trade talks between the U.S. and China.
Imports declined 3.4% year-on-year, leaving a trade surplus of $103.2 billion.
China exported $28.8 billion to the United States in May, while its imports from the U.S. fell 7.4% to $10.8 billion, the report said.
Trade slowed in May after China's global exports jumped 8.1% in April, even after U.S. President Donald Trump struck a deal with Beijing to delay implementation of stiff tariff hikes to allow time for talks.
Many businesses had rushed orders to try to beat higher tariffs, even as some tariffs took effect or remained in place.
The next round of U.S.-China talks was due to take place later on Monday (June 9, 2025) in London.
The talks follow a phone call last week between Mr. Trump and Chinese leader Xi Jinping. In early May the two sides agreed to a 90-day suspension of most of the tariffs they had imposed on each other in their escalating trade war.
Big deal: On the U.S.-China trade deal
Since then, the U.S. and China have exchanged angry words over advanced semiconductors, 'rare earths' that are vital to many industries and visas for Chinese students at American universities.
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Hindustan Times
22 minutes ago
- Hindustan Times
Indian govt report in 2022 foresaw China rare earth export crisis
As Indian manufacturers are scrambling to deal with supply-chain disruptions caused by China's restrictive policies on the export of rare earth metals, in many of which it has a near monopoly, experts are pointing to an early warning of this — in a 2012 strategy paper prepared by a steering committee headed by the then mines secretary Vishwapati Trivedi after a similar crisis caused after Beijing restricted supplies of the critical materials that are needed in the auto, space and clean energy industries. Also Read: 'China deal done': US to lower tariffs to 55%, allow Chinese students for higher ed Back then, they added, India felt the heat of Chinese squeeze and on August 9, 2011, the government set up an 11-member steering committee to develop a strategy paper on status and availability of rare earth elements (REE) and energy critical elements (ECE). The committee was chaired by the mines secretary and co-chaired by chairman of the Centre for Study of Science Technology (C-STEP). Members included senior officials and experts from the Department of Science & Technology (DST), the Geological Survey of India, the Bhabha Atomic Research Centre (BARC), the Department of Atomic Energy, the Defence Research & Development Organization (DRDO) and the chairman of India Rare Earth Ltd. Also Read: China can't afford double standards in fight against terror: S Jaishankar The forward of the committee's report titled ''Rare Earths and Energy Critical Elements: a Roadmap and Strategy for India', published in July 2012, said: 'In view of the increased demand of REE and near monopoly of supply from China, there is a need to develop national policies and implementation strategies for ensuring indigenous supply of REE… A Steering Committee was constituted by the ministry of mines with the ultimate intention of preparing a strategy paper for the government, providing short, medium and long term options along with proposals for specific policy & legislative interventions.' Also Read: 'Gratitude to Indian Navy': China on rescue of crew aboard cargo ship which caught fire off Kerala coast The report was blunt about Beijing's approach. 'China has been the major supplier of rare earths all over the world. Even though it has only 37% of global RE resources, it has captured the worldwide market to the extent of 97%. The low cost and efficient production process enabled China to monopolize the rare-earth market, forcing rare earth operations around the world to close down. Indian Rare Earths Ltd (IREL), which was once a leader in export of rare earth compounds had to shut down its operation in 2008,' the report added. 'Over the last couple of years China has imposed restrictions and curtailed its export by over 30% citing domestic demands as the reason. This unexpected decline has restarted rare earth operations once again throughout the world,' the report said. The same thing is happening again. Indian industries are suffering due to shortage of the critical minerals. According to a Reuters report published in Hindustan Times on Wednesday, automobile majors such as Maruti Suzuki have cut near-term production targets because of rare earth shortages. 'Government departments, particularly the ministry of commerce and industry, are holding hectic meetings with industry and other stakeholders to resolve the supply crisis. Government is using diplomatic channels asking Beijing to relax supply curbs for the Indian industries,' one of the people mentioned in the first instance said. The ministries of mines, commerce and external affairs did not respond to an email query on this matter. China's curbs on exports of rare earth materials have been officially raised through diplomatic channels by India, especially in view of the impact on manufacturers of electric vehicles, people familiar with the matter said. The issue reportedly figured in a meeting between Indian ambassador Pradeep Rawat and China's vice foreign minister Sun Weidong in Beijing on June 5. 'China's move was primarily aimed at the US and the impact on India was collateral damage. We are hopeful that the matter will be resolved soon,' one of the people said. It is not clear how China's deal with the US —the two countries reached a framework agreement that will now have to be approved by their respective Presidents —will affect this. The matter is expected to figure in discussions during a visit to India by Sun Weidong, a former Chinese ambassador to New Delhi, beginning on Thursday, the people said. Sun is visiting India to continue discussions with foreign secretary Vikram Misri aimed at normalising bilateral ties following the end of the military face-off in the Ladakh sector of the Line of Actual Control (LAC) last October. Auto manufacturers affected by the curbs on rare earth exports too have sought to reach out to Chinese authorities but without much success so far, the people said. Two days after India and China reached an understanding on withdrawing forces from the two remaining 'friction points' on the LAC last October, Prime Minister Narendra Modi and President Xi Jinping met in the Russian city of Kazan and agreed to revive several mechanisms to restore normalcy in ties and to address the long-standing border dispute.
Mint
an hour ago
- Mint
Group of Seven Tries to Avoid Trump Conflict by Scrapping Joint Communique
Group of Seven nations won't try to reach consensus on a joint communique at next week's leaders summit in Canada, people familiar with the matter said, an acknowledgment of the wide gulf that separates the US from the other members on Ukraine, climate change and other issues. In place of a single document, G-7 leaders are likely to release standalone joint leaders' statements on various topics, according to the people, who asked not to be identified discussing private deliberations. That approach is the preference of the Canadian hosts, they said. Prime Minister Mark Carney is looking to ease tensions with the US president and push forward with talks about trade and security. Agreeing on a final communique is usually a ritual for leaders gathered at meetings like the G-7 summit. While the document has no legal authority, it amounts to a statement of principles and is intended to display unity among the participants on topics of global importance. The communique from last year's summit, for example, was 36 pages long and included pledges to support Ukraine in the conflict with Russia, tackle climate change and foster gender equality. But Trump has upended US policy on all those issues and many more, declining to voice support for Ukraine over Russia, scrapping climate-change initiatives and dismissing gender initiatives as part of a 'woke' agenda by Democrats. Carney wants to avoid a repeat of 2018, the last time Canada hosted the Group of Seven leaders, when Trump pulled out of the joint communique hours after signing it because he was annoyed by comments made to reporters by then Prime Minister Justin Trudeau. In addition to trade, the leaders of the group of wealthy economies — the US, UK, Germany, France, Italy, Japan and Canada — are set to discuss artificial intelligence, energy security, wildfires and global conflicts, including in Ukraine and the Middle East. Ukrainian President Volodymyr Zelenskiy will join the summit, along with the leaders of India, Brazil, Mexico and others. Following the 2018 meeting, final documents tended to be shorter so that they were less time-consuming to negotiate but also included less text that members could disagree with, said Caitlin Welsh, who served in Trump's first administration. 'Moving forward to this year's G-7 summit, today the Trump administration almost certainly believes that no deal is better than a bad deal, and it continues to prefer a back-to-basics approach to the G-7,' Welsh said at a briefing held by the Center for Strategic and International Studies. 'The Trump administration last time around believed that the G-7 had strayed from its original purpose, which was to promote global economic stability and growth,' she said, adding that Carney's agenda 'appears to stick to traditional G-7 principles.' With assistance from Nick Wadhams. This article was generated from an automated news agency feed without modifications to text.
Indian Express
an hour ago
- Indian Express
Alarm bells in textile recycling hub Panipat over suspension of Bangladesh rags supply
Traders and manufacturers in Panipat, India's largest textile recycling hub that receives discarded clothing from multiple countries for recycling and resale, have raised concerns over the suspension of shipments from Bangladesh, the top source of rags for recycling in India, The Indian Express has learnt. 'Rags and recycled items were not part of the restriction on garments through the land border route that the government announced in May. Traders in Panipat are complaining that the shipments from Bangladesh have been halted but it is unclear why this step has been taken,' a person aware of the development said. While traders plan to raise the issue with the government, they remain unsure about the reason for the halt in exports. But the development comes amid heightened trade tensions between India and Bangladesh after Dhaka's Chief Adviser Muhammad Yunus called for the extension of the Chinese economy around the strategically important North-East India region. This assumes significance as over 200 tonnes of rags are recycled in Panipat every day, with 150-200 mills operating in the sector. Their key sources of rags include discarded clothing from Western countries, but Bangla-desh alone generates over 0.5 million metric tonnes of textile waste from its factories each year. The suspension of exports of rags and textile waste coincides with Bangladesh attempts at seeking Generalised Scheme of Preferences Plus (GSP+) status in the European Union, which would result in the removal of tariffs on over 66 per cent of EU tariff lines. The EU is one of Bangladesh's biggest export markets, but the country is set to lose concessions in 2026 after graduating from the Least Developed Country (LDC) status. To qualify for the GSP+ scheme, Bangladesh must enhance its domestic recycling capabilities and meet specific conditions related to labour rights and governance. According to news agency Reuters, increased local recycling could save Bangladesh around $700 million annually in import costs, as several countries, including India, ramp up their textile recycling capacities. India recycles or reuses approximately 4.7 million tonnes, or about 60 per cent, of its textile waste. Political and economic tensions between India and its largest trade partner in South Asia have been growing, especially as the Union government in May imposed a series of import restrictions on goods from Bangladesh, particularly on ready-made garments, the country's largest export item and a key source of foreign exchange. This followed earlier signs of deteriorating ties, including New Delhi's decision in April to terminate the five-year-old transhipment facility for Bangladesh's export cargo – a mechanism that enabled Dhaka to ship goods to several Western countries using Indian land routes and airports. Notably, Bangladesh also imposed port restrictions on Indian yarn exports via land ports, allowing such exports only through seaports. This move, an official said, was ostensibly in response to demands from Bangladeshi textile mills – despite the fact that the land route offers the quickest and most cost-effective yarn supply to the ready-made garments industry in Bangladesh. Yarn exports to Bangladesh account for 20 per cent of India's total exports to the country, which were valued at $11.38 billion in FY25. Official data showed that cotton yarn and handloom product exports to Dhaka stood at $2.39 billion during the last financial year. Meanwhile, India imports ready-made garments from Bangladesh valued at over $700 million annually. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
