In May, China's trade with the US experienced significant declines as the ongoing trade conflict between the two countries continued to take its toll. Exports to the US dropped by 34.5%, while imports fell by 18.1% compared to the previous year. Despite a partial easing of tariffs following a mid-May agreement, the trade tensions have led to a notable decrease in trade volumes.
China's overall trade surplus widened to $103 billion, but the figures failed to meet analysts' expectations. The Chinese economy faces additional pressures from weak domestic demand and deflation concerns. The trade dispute has also impacted China's relationships beyond the US, as exports to Germany increased while imports decreased.
Efforts to resolve the trade dispute are ongoing, with high-level talks planned in London. These negotiations aim to address unresolved issues like export controls on rare earth materials and US restrictions on technology sales to China. As both nations navigate these economic challenges, the global economy watches closely, aware that the outcome could influence broader economic stability.
