China’s May Trade Data Reveal Export Slowdown and Import Decline

China’s official customs data for May 2025 reveal a sharp shift in its trade dynamics. Exports grew 4.8% year-on-year to $316.1 billion, missing expectations and slowing from April’s 8.1% rise.

Imports fell 3.4%, a much steeper decline than forecast, highlighting weak domestic demand and persistent caution among Chinese consumers and businesses.

The trade surplus widened to $103.2 billion, up from April’s $96.18 billion. This surplus grew not because of strong export momentum, but because imports dropped even faster than exports grew.

The figures reflect the ongoing impact of U.S. tariffs, which reached as high as 145% in April before a temporary truce in May led both countries to suspend most duties. Even with this truce, the effects of earlier tariffs lingered.

Exports to the U.S. saw their steepest monthly drop in over five years, down more than 34% in May. In contrast, shipments to Southeast Asia and the European Union increased, helping offset the loss of U.S. business.

China’s imports of key commodities such as crude oil, coal, iron ore, and copper all declined in May. Natural gas imports rose slightly from April but remained 11% below last year’s level.

These trends underscore concerns about the health of China’s economy, as lower imports signal subdued manufacturing and consumer activity. Both nations plan further trade talks, but the business environment remains tense.

For global companies, China’s trade data show the risks of relying on a single market and the growing importance of diversifying supply chains and export destinations.

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