
China says its exports to the U.S. fell 35% in May, as trade talks are due to start in London
China's exports to the United States fell 35% 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% last month, slowing from an 8.1% year-on-year increase in April. 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, compared with $44 billion a year earlier. Its imports from the U.S. fell to $10.8 billion, the report said.
Still, exports to Southeast Asia and the European Union remained robust, growing 14.8% and 12%, year-on-year. Exports to Thailand, Vietnam and Indonesia were sharply higher, and exports to Germany jumped more than 12%.
'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 U.S. 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 follow 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 U.S. which China had slowed, threatening a range of U.S. manufacturers that relied on the critical materials.
There was no immediate confirmation from China. The trade data released on Monday showed a nearly 21% 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%.
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% in May, evidence of sluggish demand. The persisting deflation partly reflects lower food prices, economists said.
Producer price deflation was worse, contracting 3.3% in May, its lowest level in almost two years, after falling 2.7% in April.
___
AP researcher Yu Bing in Beijing contributed to this report.
Elaine Kurtenbach, The Associated Press
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Globe and Mail
42 minutes ago
- Globe and Mail
Canada, U.S. exchanging potential terms on economic and security deal
Canada and the United States are exchanging potential terms of agreement in closely held talks on an economic and security deal, The Globe and Mail has learned, but these do not represent the draft text of an actual pact. These exchanges are an effort to spell out what both sides might be able to agree upon as Ottawa and Washington try to find enough common ground to end their damaging trade war, sources said. The Globe is not naming the sources because they were not authorized to speak publicly. It's also far from clear whether a deal will be landed anytime soon as the United States is negotiating with close to 20 other countries that are seeking relief from tariffs U.S. President Donald Trump has imposed on their products. One government official compared the documents being exchanged to term sheets in the corporate sector, which outline the ingredients of a possible deal and serve as the basis for negotiations. Canada and the U.S. are engaging in talks on a new economic and security relationship that could amount to the first phase of talks with a second phase being the renegotiation of the trilateral United States-Mexico-Canada Agreement possibly to follow as already scheduled in 2026. ArcelorMittal laying off 153 workers in Hamilton as Trump tariffs hammer the steel industry Opinion: Carney was right to not retaliate against Trump's latest tariffs The economic-defence talks are being conducted among a very small circle of officials including International Trade Minister Dominic LeBlanc, Canada's ambassador to the United States Kirsten Hillman, U.S. Commerce Secretary Howard Lutnick and Jamieson Greer, the United States Trade Representative. It's possible this deal may be an executive-handshake agreement such as the one the British government signed with the White House in May. Sources said Canada and the United States are talking about working together to counter China's unfair trade practices, a topic that could affect U.S. tariffs on Canadian steel and aluminum, and further border security arrangements to stop the illegal distribution of the opioid fentanyl. The United States also wants Canada to take a great role in securing the Arctic and join Mr. Trump's ambitious Golden Dome missile shield project – a project Prime Minister Mark Carney has publicly said would make sense for Canadians to be part of. They said each side is putting ideas on paper and sharing them as part of the talks. CBC News on Friday reported it had learned of the existence of a working document outlining details of a potential deal. CBC, citing an unidentified source, said the working document states that Canada is willing to participate in the Golden Dome security program, and it also mentions Canadian commitments to build more infrastructure in the Arctic, Canada's pledge to meet its NATO defence spending targets, as well as previously announced border security investments.


Globe and Mail
an hour ago
- Globe and Mail
Politics Insider: Carney recruits Hydro‑Québec CEO to head public service
Hello, welcome to Politics Insider. Let's look at what happened today. Mark Carney has recruited Hydro‑Québec CEO Michael Sabia to take over as the country's top bureaucrat to help advance the Prime Minister's ambitious agenda. Sabia had served as deputy minister of finance before he left government to serve as head of the Quebec pension plan and later Hydro‑Québec. The current Clerk of the Privy Council John Hannaford announced today that he will leaving the government as the head of the public service and top adviser to the Prime Minister. Robert Fife reports that Carney had sought out Sabia because he needed a Privy Council clerk with business experience, who can push through his agenda, which includes major nation-building projects, a revamped military, major housing initiatives and cost-cutting expenditures for the public service. As Privy Council clerk, Sabia's roles include providing non-partisan advice to the Prime Minister and elected officials. Also, Steven Chase reports that Canada and the United States are exchanging potential terms of agreement in closely held talks on an economic and security deal. But these terms do not represent the draft text of an actual pact. These exchanges are an effort to spell out what both sides might be able to agree upon as Ottawa and Washington try to find enough common ground to end their damaging trade war, sources said. The Globe and Mail is not naming the sources because they were not authorized to speak publicly. Alberta working with oil companies on pipeline proposal, Alberta Premier says: Danielle Smith also says she expects Prime Minister Mark Carney to 'operate in good faith' on the pipeline issue. Proposed GST rebate for first-time homebuyers could offer average $27,000 relief, says PBO: The Parliamentary Budget Officer says tax relief is expected to cost the government $1.9-billion, although its estimates do not take into account how the cut would affect market behaviour. Saskatchewan Premier vows $500 per person for wildfire evacuees: Scott Moe said that money is on top of existing supports for the more than 10,000 people forced out of their homes owing to a string of wildfires in Saskatchewan's northern region. B.C. Transport Minister raises concerns over BC Ferries construction deal with Chinese state-owned shipyard: The winning bidder on the contract to build four new passenger ferries is Chinese state-owned China Merchants Industry Weihai Shipyards. What's in Kananaskis? Explore the outdoor escape where G7 leaders will gather: The G7 Leaders' Summit descends on Alberta's Kananaskis Country from June 15 to 17. Kananaskis – just an hour's drive from Calgary – isn't a national park. Rather, K-Country, as locals call it, is a 4,000-square-kilometre network of connected provincial parks, reserves and recreational zones encompassing mountains and foothills. Prime Minister's Day: In Ottawa, Mark Carney attended the weekly Liberal caucus meeting on Parliament Hill and also attended Question Period. Carney also spoke with Brazilian President Luiz Inácio Lula da Silva and invited him to next week's G7 summit in Kananaskis, Alta. Party Leaders: At the House of Commons, Bloc Québécois Leader Yves-François Blanchet participated in Question Period. In British Columbia, Green Party Leader Elizabeth May attended Parliament virtually and, in person she attended the blessing of new solar panels at the St. Andrew's Anglican Church in Sidney, B.C. NDP Interim Leader Don Davies, with other caucus members, held a news conference on NDP defence policy. No schedule released for Conservative Leader Pierre Poilievre. Starmer in Ottawa: British Prime Minister Keir Starmer is to visit Mark Carney in Ottawa on Saturday and Sunday ahead of next week's G7 Leaders' Summit in Kananaskis. Quote of the Day: 'That's the thing about us New Democrats. We're like goddamned dandelions. It's like once we're on your lawn, you can't seem to get rid of us so the dandelions are coming up again.' - Former NDP MP Charlie Angus, at a Parliament Hill news conference today, on his party's resilience after a federal election result he described as an 'unmitigated disaster.' Angus said he will not seek the party leadership. Which Russian leader attended the last G7 summit (then known as the G8summit) held in Kananaskis in 2002? Scroll to the bottom of this newsletter for the answer. Twenty years late, Canada hits the old NATO target, just in time to fall short of the new one. Post Mulroney, the Conservatives' brand is 'loser.' It's time for an overhaul. Got a news tip that you'd like us to look into? E-mail us at tips@ Need to share documents securely? Reach out via SecureDrop. The answer to today's question: Russian President Vladimir Putin attended the summit and appeared in a photo that included Canada's Jean Chrétien, France's Jacques Chirac, Tony Blair from Britain and U.S. President George W. Bush.


National Post
an hour ago
- National Post
BC Ferries deal with Chinese shipyard makes waves in Ottawa
The Spirit of British Columbia leaves the Tsawwassen Ferry Terminal in Delta, BC, May, 14, 2025. Photo by RICHARD LAM / PNG OTTAWA — BC Ferries set off a tidal wave of controversy on Tuesday after announcing a major shipbuilding deal with a Chinese state-owned enterprise, with the ripple effects of the decision reaching Ottawa. THIS CONTENT IS RESERVED FOR SUBSCRIBERS Enjoy the latest local, national and international news. Exclusive articles by Conrad Black, Barbara Kay and others. Plus, special edition NP Platformed and First Reading newsletters and virtual events. Unlimited online access to National Post. National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles including the New York Times Crossword. Support local journalism. SUBSCRIBE FOR MORE ARTICLES Enjoy the latest local, national and international news. Exclusive articles by Conrad Black, Barbara Kay and others. Plus, special edition NP Platformed and First Reading newsletters and virtual events. Unlimited online access to National Post. National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles including the New York Times Crossword. Support local journalism. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Vancouver Island Conservative MP Jeff Kibble raised the issue in Wednesday's question period, accusing the Liberal government of rewarding the provincial carrier for selling out Canada's national interest. 'The Liberals are set to hand over $30 million (in federal subsidies) to BC Ferries while BC Ferries hands over critical jobs, investment and industry to China,' said Kibble. BC Ferries said in a press release that it had awarded China Merchants Industry Weihai Shipyards (CMI Weihai) a contract to build four new vessels after a 'rigorous' global bidding process. Company CEO Nicolas Jimenez was quoted in the release as saying that CMI Weihai was the 'clear choice' for the contract given, among other factors, its 'proven ability to deliver safe, reliable vessels on dependable timelines.' Kibble blasted BC Ferries in the House of Commons for buying the ships from China instead of a 'proven Canadian shipbuilder' and pressed the Liberal government to tie federal ferry subsidies to buying Canadian-built ships. Liberal Transportation Minister Chrystia Freeland said that she shared Kibble's concerns about procurement 'at all levels of government' but wouldn't comment directly on the BC Ferries contract, calling it a provincial matter. One politician who hasn't hesitated to criticize the deal is the provincial minister responsible for BC Ferries. B.C. Transportation Minister Mike Farnworth was quick to distance himself from the decision, saying he was worried about the message it sends in the midst of Chinese economic aggression. 'I do have concerns around procuring services from any country that is actively harming Canada's economy through unfair tariffs or other protectionist trade practices. I have shared these concerns with BC Ferries,' Farnworth told the media. Yet, despite his reservations, he ruled out blocking the BC Ferries-CMI Weihai deal. 'BC Ferries is an independent company responsible for its own operational decisions,' said Farnworth. He added that he was 'disappointed' that the contract didn't include more involvement from Canadian shipyards. BC Ferries' head of fleet renewal, Ed Hooper, told Postmedia that no Canadian shipbuilders bid on the contract won by CMI Weihai.