Chinese exports to the US experience sharpest decline since 2020

China's exports in May grew less than expected, primarily due to a significant drop in shipments to the United States despite a recent trade truce between the two economic giants. According to Chinese customs data, total exports rose by 4.9% year-on-year, below the 6% increase economists had forecasted. Exports to the US plummeted by 34.4%, the steepest decline since February 2020, offsetting an 11% rise in exports to other countries.

The trade war between China and the US has led to lower exports to the US, but the damage was mitigated by stronger exports elsewhere, noted Zhiwei Zhang, chief economist at Pinpoint Asset Management. Following trade talks in Geneva last month, both countries agreed to reduce import tariffs for 90 days to seek a resolution to their trade conflict.