BEIJING: Chinese exports grew slower than expected in May, according to official data on Monday (Jun 9), as shipments to the United States tumbled amid global trade turmoil triggered by Donald Trump’s tariff blitz.
The figures also showed imports suffered a forecast-beating drop, with weak domestic consumption in the world’s number two economy highlighted by data earlier in the day revealing another month of falling prices.
The 4.8 per cent year-on-year drop in overseas shipments last month was an improvement on April but bigger than the 6.0 per cent forecast in a survey of economists by Bloomberg.
The reading included a 12.7 per cent plunge in exports to the US compared with April, when Trump unveiled his eye-watering tariffs on China. Imports from the US tanked 17.9 per cent after Beijing imposed tit-for-tat measures.
Exports tumbled by a third year-on-year in May.
In contrast, the data showed shipments to Vietnam increased from the previous month. Those to other Southeast Asian countries, including Malaysia, Thailand, Singapore and Indonesia, all declined slightly after soaring in April, the figures indicated.
“The trade war between China and the US led to sharply lower exports to the US, but the damage was offset by stronger exports to other countries,” Zhiwei Zhang, resident and Chief Economist at Pinpoint Asset Management, said in a note.
“The trade outlook remains highly uncertain at this stage,” he added, pointing to the impact of “frontloading”, when overseas buyers increase shipments ahead of potentially higher tariffs.
CONSUMER PRICES
Monday’s readings added to concerns about the Chinese economy, with a report from the National Bureau of Statistics (NBS) showing the consumer price index – a key measure of inflation – dropped 0.1 per cent year on year in May.
The reading, which was slightly better than expected but marks the fourth straight month of falling prices, comes as Beijing struggles to boost the sluggish domestic consumption seen since the end of the pandemic.
