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China’s export to the US has been the highest last month since the introduction of Covid-19 epidemic, exposing bets for Beijing as Chinese and American negotiators, they are set to hold a meeting in London on Monday for business talks.
According to the calculation of Financial Times based on official data, exports to the US in the terms of the US fell in 34 percent year, before February 2020, the biggest fall since February 2020 and the 21 percent decline of April.
Property has been an important driver of development for China against the backdrop of recession. Overall, exports increased by 4.8 percent year after year.
Data reveals the impact on exports Trade tension Between the two largest economies in the world.
The expected London talks follow a telephone call last week between US President Donald Trump and his Chinese counterpart Xi Jinping. Both sides agreed on 12 May 90-day trusWhich is delicate between a row on the slow approval of rare-earth shipment.
“It is likely that the May data was weighed by the peak tariff period,” said Lin Song, the chief China economist in ING. “We hope that export growth to the US may be cured in the coming months.”
On Monday, different data showed that China’s consumer prices fell in the fourth straight month in May and the manufacturer’s prices fell at the fastest pace in about two years.
The National Statistics Bureau said on Monday that the Consumer Price Index fell 0.1 percent on the year in May. The manufacturer’s prices, which reflect the cost of goods at the factory gate, fell by 3.3 percent of the fastest fall since July 2023.
Trade tension has added pressures to the recession of property starting in 2021. The years of continuous weak prices and the duration of deflation have expressed concern over consumer confidence and added calls for more stimulation than Beijing.
The People’s Bank of China announced the cut in major lending rates as part of a stable spontaneity last month, which has also seen the mortgage rates to support the housing area.
In Capital Economics, China’s economist Zichun Huang suggested that business data showed us to weigh Tariff on overall exports.
“Initial signs suggest that the demand for some Chinese goods has been cured since the Geneva Trus, which should reduce the drag on exports in the near period after the Geneva Trus.” “But it is unlikely to us that the tariff will be reduced further and there is still a risk that they can be re -increased
The song in ING stated that it was “difficult to imagine a significant utterance” in the CPI as “domestic consumer spirit remains soft and tariffs can put further deflation”.
