China Trade Tensions Deepen as Export Growth Slows

In May, China's export growth reached its lowest point in three months, driven by the impact of U.S. tariffs. This development has further strained the world's second-largest economy as it navigates both domestic and international pressures.

Customs data revealed a dramatic 34.5% plunge in exports to the U.S. year-on-year, highlighting the effect of ongoing trade tensions on China's economy. Despite a temporary suspension of some tariffs, the trade outlook remains uncertain as negotiations continue between Beijing and Washington.

The economic challenges are compounded by a significant drop in imports and ongoing domestic demand fragility, alongside ongoing deflationary pressures and sluggish retail sales, which have hindered a robust recovery post-pandemic.

(With inputs from agencies.)