China’s Export growth falls short in May amid sharp decline in U.S. trade

China’s Export Growth Falls Short in May Amid Sharp Decline in U.S. Trade

China’s export growth underwhelmed in May, as a steep drop in shipments to the United States weighed heavily on the overall trade performance. Analysts anticipate signs of a recent Beijing-Washington trade truce will become evident in the June data.

📉 U.S.-China Trade Hit Hard
Exports to the U.S. plummeted by 34.5% year-on-year — the steepest fall since February 2020, when the COVID-19 pandemic first disrupted global supply chains, according to data from Wind Information. Imports from the U.S. also declined sharply, falling over 18%, while China’s trade surplus with America narrowed by 41.55% to $18 billion.

📊 Overall Trade Figures
Chinese exports rose 4.8% in May compared to a year earlier, missing the 5% increase forecasted in a Reuters poll. Imports, however, fell by a larger-than-expected 3.4%, significantly below the anticipated 0.9% decline. The ongoing contraction in imports is widely attributed to muted domestic demand.

📈 Regional Trade Resilience
China’s trade remained resilient with other key partners.

• Exports to the ASEAN bloc surged nearly 15% year-on-year.

• Shipments to the European Union climbed 12%.

• Exports to Africa saw a notable jump of over 33%.

Despite global uncertainties, these regional gains helped offset some of the weakness in trans-Pacific trade. Analysts suggest global demand recovery and potential policy support at home could shape China’s trade trajectory in the second half of 2025.