China's exports slow as trade war takes toll
BEIJING: Chinese exports grew at a slower pace than expected in May, official figures published Monday showed, hours ahead of expected talks between Beijing and Washington aimed at easing a gruelling trade war.
Imports fell more dramatically than expected last month, with weak domestic consumption in the world's number two economy highlighted by data earlier in the day revealing another month of falling prices.
The 4.8 per cent year-on-year increase in overseas shipments last month was slower than the 8.1 per cent growth recorded in April, also falling short of the six per cent jump that was forecast in a survey of economists by Bloomberg.
It comes as representatives from China and the United States are expected to meet in London on Monday for another round of high-stakes trade talks that markets hope will ease tensions between the economic superpowers.
Monday's reading included a 12.7 per cent plunge in exports to the United States compared with April, when US President Donald Trump unveiled his eye-watering tariffs on China.
May's exports to the United States also represented a year-on-year decline of more than one third -- the steepest slide since early 2020.
In contrast, customs data showed shipments to Vietnam increased from the previous month.
Those to other Southeast Asian countries including Malaysia, Thailand, Singapore and Indonesia all declined slightly after soaring in April, the figures indicated.
"The acceleration of exports to other economies has helped China's exports remain relatively buoyant in the face of the trade war," wrote Lynn Song, chief economist for Greater China at ING, noting that shipments to Southeast Asian nations were up 14.8 per cent year-on-year.
China's overall imports in May dropped 3.4 per cent year-on-year, coming up short of the 0.8 per cent decline forecast by the Bloomberg survey.
Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said the trade outlook "remains highly uncertain". He pointed to the impact of "frontloading", when overseas buyers increase shipments ahead of potentially higher tariffs. — AFP
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