China says its exports to the US fell 35% in May, as trade talks are due
to start in London
[June 09, 2025] By
ELAINE KURTENBACH
China's exports to the United States fell 35% in May from a year
earlier, new customs data show, adding to pressure on the world's second
largest economy as a new round of trade talks with Washington was due to
start later Monday in London.
China's total exports rose 4.8% last month, slowing from an 8.1%
year-on-year increase in April. 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, compared with
$44 billion a year earlier. Its imports from the U.S. fell 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. Exports to Thailand, Vietnam and
Indonesia were sharply higher, and exports to Germany jumped more than
12%.
“The acceleration of exports to other economies has helped China’s
exports to remain relatively buoyant in the face of the trade war,”
Lynne Song of ING Economics said in a commentary.
Many businesses had rushed orders earlier in the year to try to beat
higher tariffs. Once new import duties took effect, shipments slowed.
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, Zichun Huang of Capital Economics
said in a report.
“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,” Huang said.
Despite the tariffs truce, 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 round of negotiations due to take place later Monday in London
follow a phone call last week between Trump and Chinese leader Xi
Jinping.
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Trucks loaded with container move through a container terminal port
in Shanghai, China Monday, June 9, 2025. (Chinatopix Via AP)
 It's unclear if that exchange will
lead to any significant progress during the talks this week.
Speaking to reporters on Air Force One on Friday, Trump said Xi had
agreed to restart exports of rare earth minerals and magnets to the
U.S. which China had slowed, threatening a range of U.S.
manufacturers that relied on the critical materials.
There was no immediate confirmation from China. The trade data
released on Monday showed a nearly 21% plunge in the value of
China's rare earths exports in January to May compared with a year
earlier. In terms of volume, those exports rose 2.3%.
Similar trends can be seen in exports of other products and
commodities, such as shoes, ceramics and cell phones, as slowing
demand causes prices to fall.
Other data released Monday highlighted the pressure on China's own
economy from slowing exports. Imports have faltered since
manufacturers import many of the components and materials needed for
the goods they assemble for the world.
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.
___
AP researcher Yu Bing in Beijing contributed to this report.
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