Massively collapsed her trade China with the US because of the conflict between the world’s two largest economies. According to the details of the Beijing Customs Authority, the export And imports declined significantly in April.
In May, China’s exports estimated in US dollars decreased by 34.5%, while imports decreased by 18.1% compared to May 2024.
In mid -May, the two sides agreed to a pause and a significant decline in surcharges in goods from the other country in the previously escalating tariff dispute. Today (9.6.2025) senior representatives of the two countries want to continue to discuss commercial issues in London.
However, some problems are still existing, such as Beijing’s controls to exports of rare land and magnets, which are important to industry and for which China is the main processor worldwide. The US has limited the sale of cutting -edge technology, such as computer chip design software or major aviation components, for which China depends on foreign countries.
How did China’s economy evolve overall
Just in April, China’s foreign trade had significantly exceeded the expectations of many observers. The case was that the People’s Republic could increase the exports of its products to other countries.
Overall, China’s foreign trade increased again in May. Exports increased by 4.8% compared to the same month last year. Imports, on the other hand, decreased by 3.4%. The trade surplus amounted to about $ 103 billion (about 90 billion euros).
Consequently, the latest data is lagging behind the expectations of analysts. On average, exporting increased by about 5% and slightly reduced imports.
What do the information about German businesses mean
Due to the trade conflict, Chinese exporters could no longer count in the US, according to Handelsblatt. However, goods from the Far East have found other roads and customers. As in April, China’s exports to Germany fired by 21.5% in May, while imports from Germany decreased by 1.3%.
The reduction in imports highlights the weak domestic demand and exacerbates the already difficult economic conditions for German companies in China, said Maximilian Butek, Managing Director of the German Chamber of Commerce (AHK) in China for eastern China.
The German industry is also concerned about Beijing’s export controls to rare land. “The situation is serious: the affected German companies are urgently awaiting the necessary export licenses for rare earths and magnets,” Butek said. According to him, EAC members have occasionally reported that licenses have been granted. But now a process of fast process is needed to avoid stopping production, Butek demanded.
What worries China’s economy
People’s Republic continues to face weak domestic demand. This is also reflected in a steady reduction in imports. Beijing’s industrial policy has so far led to producing in some areas significantly more than the market can absorb. As a result, many goods are exported at low prices. An example is the solar industry.
The fact that people in China do not consume enough is also due to the consequences of the serious real estate crisis. Many people have invested in apartments that are less deserved because of the decline in prices, which compresses consumer feeling. The weakness of the sector, which is otherwise important for the economy, also burdens companies and local governments.
Deflation pressure is also a problem for China’s economy. As the statistical service announced today, consumer prices in May were 0.1% lower than a year earlier. April was dropped by 0.1% in April. The result was slightly better than the 0.2% drop in reuters poll. However, the producer price index decreased by 3.3% annually in May. This is the biggest decline in the last 22 months. In a Reuters poll, economists were expecting 3.2%.
Deflation, that is, the opposite of inflation, provides consumers steady prices in the fund, but in the long run puts pressure on business profits, which can lead to salaries or job losses.