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China’s exports to the USA has dropped the most last month since the beginning of Covid 19 pandemic, which emphasizes the missions for Beijing, since the Chinese and US negotiator will meet for trade talks in London on Monday.
Exports to the United States went according to the previous year’s contract of 34 percent compared to the previous year according to the calculations of the Financial Times calculations based on official data, the largest autumn since February 2020 and steeper than 21 percent in April.
Trading was an important growth driver for China against the background of slowing down real estate. Total exports rose by 4.8 percent compared to the previous year.
The data underline the effects on the exports of Trade voltages Between the two largest economies in the world.
The expected London talks follow a phone call between US President Donald Trump and his Chinese counterpart XI Jinping. The two sides voted on on May 12th 90-day armisticeWhich remains fragile in a row due to slow approval of rare earth programs.
“It is likely that the May data will continue to be weighed after the top newspaper period,” said Lynn Song, Chief China Economist at Ing. “We assume that export growth in the United States could recover in the coming months.”
Separate data on Monday showed that China’s consumer prices decreased in May in the fourth month in May and producer prices have been the fastest pace for almost two years.
The consumer price index fell by 0.1 percent compared to the year in May, the National Bureau of Statistics said on Monday. The producer prices that reflect the goods costs at the Werkstor was 3.3 percent, the fastest decrease rate since July 2023.
The trade voltages increased the pressure from a real estate desolation that began in 2021. Years with persistently weak price growth and deflation periods have triggered concerns about the consumer and added to the demands for more stimulus from Beijing.
The People’s Bank of China announced cuts in important credit rates as part of a constant relaxation last month, in which the mortgage interests were also reduced to support the apartment sector.
Zichun Huang, Economist in China at Capital Economics, suggested that the merchant data showed that US tariffs weigh over total exports.
“Early signs indicate that the demand for Chinese goods has recovered somewhat since the Geneva ceasefire, which should make the resistance of exports easier at short notice,” she noted. “But it seems unlikely that the tariffs will be reduced and there is still a risk that they could be hiked again
Song at ING said it was “difficult to imagine a significant increase in CPI”, since “domestic consumer mood remains soft and tariffs could cause further deflation pressure”.
