China’s exports rose 4.8% in May from a year earlier, a bit lower than expected, as shipments to the United States fell nearly 10%, according to data released Monday just hours ahead of another round of trade talks between the U.S. and China.
Imports declined 3.4% year-on-year, leaving a trade surplus of $103.2 billion.
China exported $28.8 billion to the United States in May, while its imports from the U.S. fell 7.4% to $10.8 billion, the report said.
Still, exports to Southeast Asia and the European Union remained robust, growing 14.8% and 12%, year-on-year.
“The acceleration of exports to other economies has helped China’s exports remain relatively buoyant in the face of the trade war,” Lynne Song of ING Economics said in a commentary.
Still, trade slowed in May from an 8.1% jump in China’s global exports in April. Many businesses had rushed orders to try to beat higher tariffs, even as some new import duties took effect or remained in place.
Exports will likely rebound somewhat in June thanks to a 90-day suspension of most of the tariffs China and the U.S. imposed on each other in their escalating trade war.
“But with tariffs likely to remain elevated and Chinese manufacturers facing broader constraints on their ability to sustain rapid gains in global market share, we think export growth will slow further by year-end,” Zichun Huang of Capital Economics said in a report.
Despite the tariffs truce, the rancor between Beijing and Washington has persisted, with angry exchanges over advanced semiconductors, “rare earths” that are vital to many industries and visas for Chinese students at American universities.
The next round of negotiations was due to take place later Monday in London, following a phone call last week between Trump and Chinese leader Xi Jinping.
Other data released Monday highlight the pressure on the world’s second largest economy from slowing exports, since China imports many of the components and materials needed for the goods it assembles for the world.
But at the same time, China’s own domestic markets are suffering. The government reported that consumer prices fell 0.1% in May, evidence of sluggish demand. The persisting deflation partly reflects lower food prices, economists said.
Producer price deflation was worse, contracting 3.3% in May, its lowest level in almost two years, after falling 2.7% in April.
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AP researcher Yu Bing in Beijing contributed to this report.
