Trump tariffs drive down China industrial output in May
The latest data out of China shows industrial production slowed last month. This was partly due to the effects of US tariff measures.
The National Bureau of Statistics said on Monday industrial output in May grew 5.8 percent from a year earlier. But it was down from April's 6.1 percent.
Investment in real estate development tumbled 10.7 percent in the five months through May. The decline has deepened in recent months.
New home prices fell in 53 of China's 70 major cities. That's an increase of eight from the previous month. The latest figures underscore the prolonged slump in the property market.
But retail sales rose 6.4 percent year on year, posting sharper growth than in April. Government subsidies to replace consumer goods such as cars and household appliances contributed to the increase.
But concerns remain over a resurgence in trade friction between Beijing and Washington. This is even after both sides cut additional tariffs significantly in May and engaged in negotiations.
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NHK
6 hours ago
- NHK
Trump tariffs drive down China industrial output in May
The latest data out of China shows industrial production slowed last month. This was partly due to the effects of US tariff measures. The National Bureau of Statistics said on Monday industrial output in May grew 5.8 percent from a year earlier. But it was down from April's 6.1 percent. Investment in real estate development tumbled 10.7 percent in the five months through May. The decline has deepened in recent months. New home prices fell in 53 of China's 70 major cities. That's an increase of eight from the previous month. The latest figures underscore the prolonged slump in the property market. But retail sales rose 6.4 percent year on year, posting sharper growth than in April. Government subsidies to replace consumer goods such as cars and household appliances contributed to the increase. But concerns remain over a resurgence in trade friction between Beijing and Washington. This is even after both sides cut additional tariffs significantly in May and engaged in negotiations.
Japan Times
13 hours ago
- Japan Times
Xi visits Kazakhstan for talks with Central Asian leaders
Chinese President Xi Jinping is heading to Kazakhstan for talks with Central Asian leaders, providing a counterpoint to a Group of Seven summit by visiting a vast region at the nexus of competing interests from Washington to Beijing. Xi, who's making only his third overseas trip this year, is set to meet with Kazakh President Kassym-Jomart Tokayev on Monday and attend the second gathering of the leaders of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan the following day. The summit in the Kazakh capital Astana is taking place in parallel to the G7 event in Canada, and comes days after U.S. Secretary of State Marco Rubio met Kazakhstan's foreign minister in Washington. Xi hosted the inaugural China-Central Asia Summit in the Chinese city of Xi'an two years ago. A key objective for Xi in Kazakhstan, where he launched the sprawling Belt and Road infrastructure initiative more than a decade ago, is "future-proofing' China's economy for a potential rift with the U.S., according to Kate Mallinson, a partner at PRISM Strategic Intelligence in London. "China has come out of the last three years significantly stronger in Central Asia,' she said. "Having observed the West's attempts to use its economic influence to isolate Russia since 2022, China continues to make efforts to safeguard its economy and supply chains against any future confrontation with the U.S.' U.S. President Donald Trump's tariff war is likely to be high on the agenda as Xi cultivates alliances in Central Asia, where jockeying for resources and political influence has intensified between major powers. Italian Prime Minister Giorgia Meloni visited last month and European Commission President Ursula von der Leyen made a trip in April. The region, which is home to vast reserves of uranium and oil, as well as rare earth metals, has grown in importance for China, providing overland routes for exporting to Europe. At the same time, Russia's historical influence over the former Soviet republics has been undermined by Russian President Vladimir Putin's war in Ukraine, now well into its fourth year, allowing China to ramp up exports to a region with a gross domestic product of about $500 billion. Chinese President Xi Jinping waves to spectators on Victory Day, marking the 80th anniversary of victory over Nazi Germany in World War II, in Red Square in central Moscow on May 9. | REUTERS The Chinese leader is visiting Kazakhstan for the third time since 2020, making the country of 20 million people one of his favorite destinations in the years after the COVID-19 pandemic curtailed his global travels. Tokayev, who's been Kazakhstan's president since 2019, is a Mandarin speaker who once worked as a diplomat in China. His government has set the target of attracting $150 billion in investment by 2029, when Tokayev's term in office should come to an end. It's a goal that may require greater involvement from China, given Russia's diminishing role in the region. China has committed a total of $26 billion in capital, according to official Kazakh estimates, making it a top 5 investor behind the likes of the U.S. and Switzerland. "China's development needs a thriving Central Asia,' Liu Jianchao, who heads the Communist Party's diplomatic arm, said in a speech in March. "China welcomes Central Asian countries to take a free ride from China's growth and opening up.' China has sought to counter the U.S.-led global order — a goal it shares with Russia — in part by courting the Global South. In recent months, Xi has attended summits with regional blocs, using meetings with countries from Latin America and Africa to push for closer ties. China has also used rival groups to the G7, such as the BRICS club of nations — named after early members Brazil, Russia, India, China and South Africa, and to which Kazakhstan and Uzbekistan are partners. The group, which was considering a common currency, will meet in July. At a seminar in Shanghai this month, Chinese academics highlighted the significance of Beijing's cooperation with Central Asia in curbing ethnic conflicts and separatism, according to a state media report. China has meanwhile made economic inroads into Central Asia, increasing bilateral trade as well as expanding investment into areas ranging from energy to railways. Since 2023, China has outstripped Russia as Kazakhstan's largest trading partner. That's despite the fact that Central Asia's largest economy is, along with neighboring Kyrgyzstan, a member of a Moscow-led customs union. China's exports to the five Central Asian countries rose by more than 40% in both 2022 and 2023 as its firms, such as Huawei Technologies and BYD, expanded market share. That growth slowed last year, but it was almost three times the level in the same period in 2021 — the year before the Ukraine invasion — through the first four months of 2025. More business deals will likely be on the table as the Chinese and Kazakh leaders meet. China's East Hope Group seeks to build an aluminum smelter capable of producing 1 million metric tons of the metal a year in Kazakhstan. It's part of a large industrial project with an estimated price tag of over $12 billion, according to the state-run Kazakh Invest company.
Nikkei Asia
13 hours ago
- Nikkei Asia
China's consumption growth beats expectation on holiday spending
TOKYO -- China's retail sales expanded more than expected in May, boosted by holiday spending at the beginning of the month and the early start of the "618" online shopping festival. The gauge of household spending rose 6.4% last month, the fastest pace since December 2023, according to data published by the National Bureau of Statistics on Monday. The reading beat 5.1% increase in April and the 4.9% consensus forecast in a Bloomberg poll, even though data released last week showed China's consumer price index remained in negative territory for the fourth straight month in May, marking the longest string of falling prices in over a year.
