Chinese exports totaled $316 billion in May, up nearly 5% year‑over‑year but below economists’ 6% forecast.
The shortfall was largely caused by a sharp 34.4% drop in shipments to the United States — the steepest decline since the pandemic shutdown in February 2020. That fall occurred despite a May 12 agreement that temporarily averted tariffs of up to 145% on certain Chinese goods.
At the same time, exports to other markets rose about 11%. Vietnam saw a notable 22% increase as some Chinese firms reroute goods through third countries to lessen the impact of U.S. tariffs. These flows illustrate broader pressures on China’s economy: foreign demand still contributes roughly 40% of growth, but domestic consumption remains subdued. Imports fell 3.4% in May, and headline prices show the economy continuing to wrestle with deflationary forces.
As a result of these trends, China’s trade surplus expanded sharply, approaching $500 billion over the first five months of 2024.