China’s export growth in May missed expectations, primarily due to a sharp decline in shipments to the U.S., despite a temporary trade truce that paused most tariffs for 90 days. Exports increased by 4.8% in U.S. dollar terms compared to the previous year, falling short of the 5% jump predicted by Reuters. Imports dropped by 3.4% in May, significantly lower than the 0.9% fall anticipated by economists. This decline was largely attributed to weak domestic demand. While exports to the U.S. plummeted by 34.5%, shipments to Southeast Asia surged by nearly 15%, and those to the European Union and Africa rose by 12% and over 33%, respectively. The slowdown in May followed an 8.1% surge in April, as shipments to Southeast Asia offset the decline in U.S.-bound goods. Trade tensions between the U.S. and China remain high, with both sides accusing each other of violating the Geneva trade agreement.
— new from CNBC
