• China's exports grew by 4.8% year-on-year in May, down from 8.1% in April.
• Exports to the U.S. plummeted nearly 35%, exacerbating economic concerns.
• Imports fell 3.4%, with a trade surplus of $103.2 billion recorded for May.
• The slowdown in trade highlights the impact of ongoing U.S. tariffs and global trade tensions.
• New trade talks between China and the U.S. opened amid heightened economic uncertainty.

China's exports grew by 4.8% in May, a sharp decline from the 8.1% increase recorded in April due to ongoing trade tensions with the United States. These tensions have significantly impacted shipments to the U.S., which dropped by 34.5% year-on-year, reflecting the toll taken by President Trump's tariffs. This slowdown prompted analysts to forecast further challenges for China's economy, which has been heavily reliant on exports for recovery post-pandemic, according to SCMP, Reuters, and The Jakarta Post.

The import figures also reflect economic pressures, as imports fell by 3.4% year-on-year, marking a continued struggle with domestic consumption. This decline comes despite recent agreements to lower tariffs between the U.S. and China, aimed at easing trade tensions. The trade surplus for May was $103.2 billion, showing a slight increase from April, according to Channel News Asia and Bangkok Post.

China's trade negotiations with the U.S. are set to continue in London, with officials preparing to tackle a range of topics, including tariffs and rare earth exports. The backdrop of these talks is the significant decline in exports to the U.S., predicted to affect future economic growth unless reversed. Economists note that the volatility in trade is largely driven by the front-loading of shipments in anticipation of higher tariffs, which has skewed data temporarily, according to TRT Global and AA.

Deflationary pressures are presenting additional challenges, with consumer prices falling 0.1% in May and producer prices seeing a decline of 3.3%, the steepest drop in nearly two years. As the market adjusts to the pressures from the trade war, including the impact of diminished demand, companies face tough decisions regarding production and employment practices, as reported by India Times and SCMP.