China's May exports to the US plummeted 35% year-on-year, impacting its overall export growth, which slowed to 4.8%. While exports to other regions like Southeast Asia and the EU remained strong, the decline in US trade adds pressure on China's economy. This comes as new trade talks between China and the US begin in London, following a phone call between Presidents Trump and Xi. Despite a tariff truce, disagreements persist over key areas such as rare earth minerals and semiconductors. Economists predict further export slowdown by year-end due to persistent tariffs and broader market constraints. Simultaneously, China faces domestic challenges with falling consumer and producer prices, indicating sluggish demand.

Prepared by Christopher Adams and reviewed by editorial team.