The JISU FORTUNE ship successfully transports over 5,000 vehicles, launching from Taicang Port on its maiden journey to European nations, including the Netherlands and Belgium, on May 22, 2025.
Costfoto | Nurphoto | Getty Images
China’s export growth for May fell short of expectations, primarily due to a dramatic decline in shipments to the United States. This trend serves as a powerful reminder of the lingering impacts of government intervention in trade and the dangers of over-reliance on foreign markets. Analysts predict the implications of the recent Beijing-Washington trade truce will become clearer in June data.
Remarkably, exports to the U.S. plummeted by a staggering 34.5% from the previous year, the steepest decline since February 2020 when the COVID-19 pandemic wreaked havoc on global trade. Simultaneously, imports from the U.S. dropped over 18%, indicating that our trade imbalance with China continues to shrink, yet at what cost to our domestic economy?
While overall exports rose 4.8% in May, this fell short of the anticipated 5% increase, underscoring the fragility of our economic recovery amidst soaring inflation and corporate elitism. With imports dropping 3.4%, significantly worse than economists had forecasted, the unwillingness of consumers to spend remains a stark reminder of the challenges ahead.
Despite these setbacks, exports to Southeast Asia expanded nearly 15%, and shipments to both the European Union and Africa rose significantly. It is alarming that we are increasingly reliant on foreign markets while neglecting our own economic empowerment.
China’s total trade surplus ballooned by 25% from last year to an impressive $103.2 billion in May, but one must question whether this surplus reflects true economic strength or merely an imbalance exacerbated by misguided trade policies.
In April, exports surged by 8.1%, temporarily masking the reality that these gains were powered by a rising demand elsewhere while U.S. shipments dwindled under punitive tariffs. Prohibitive tariffs imposed by the Trump administration were re-evaluated in mid-May, but the damage had already been inflicted.
Compounding these issues, China’s exports of rare earths, critical to many high-tech industries, fell by 5.7%, revealing a troubling reliance on geo-economic strategies rather than free-market ideals. Meanwhile, export volumes for cars increased by 22% and shipments of home appliances fell around 6%, illustrating the volatile nature of global demand.
As soybean imports surged to a record high, one must ask: are we abandoning our agricultural independence in favor of foreign reliance?
High-stakes trade talks
Looking ahead, U.S.-bound exports may see a modest recovery in June, as tariffs imposed on Chinese goods have finally begun to ease. But, as experts warn, this is unlikely to translate into substantial long-term benefits for American consumers or businesses.
The tariffs that took effect in April 2025 prompted a retaliatory cycle that hurt both economies. Although a preliminary trade agreement was reached in Geneva last month, it is clear that ongoing tensions and bureaucratic hindrances are far from resolved. Current tariffs imposed by the U.S. hover at 51.1%, a stark indicator of the ongoing friction in trade relations.
Early indications show a slight uptick in demand for Chinese goods, but let us not be fooled. With inflation eroding purchasing power and government policies driving disparity, any gains made are tenuous at best. Observers point out that existing tariffs may remain unchanged or could even increase, further impeding growth.
As trade representatives from both nations prepare to meet again, we must remain vigilant. Accusations of violating trade agreements and new restrictions on exports only exacerbate the situation, showing the detrimental impact of heavy-handed government involvement.
China’s Ministry of Commerce recently confirmed its intention to continue reviewing applications for critical mineral exports. This is a tactical play, emphasizing the need for responsible and transparent trade practices that prioritize American interests.
— CNBC’s Evelyn Cheng contributed to this story.
