In May, China's exports to the U.S. fell sharply by 34.5%, marking the largest monthly decline since the pandemic began, raising significant concerns. According to the latest data from the General Administration of Customs, despite a preliminary tariff relief agreement reached between China and the U.S., trade tensions remain unresolved.

The report highlights that in addition to the steep decline in exports to the U.S., imports from the U.S. also dropped by 18.1%, resulting in a 41.55% reduction in China's trade surplus with the U.S., falling to $18 billion. However, China's total trade surplus increased by 25% year-on-year, reaching $103.2 billion.

As pressures mount, Chinese exporters are shifting their focus to Southeast Asia and European markets, with exports to ASEAN in May increasing by nearly 15%. However, this growth does not compensate for the dramatic decrease in exports to the U.S.

Analysts point out that although tariffs have partially eased, harm to industries has already occurred. Exports of smartphones and home appliances have declined by 10% and 6% respectively, while automotive and shipping exports continue to grow.

Overall, China faces dual challenges of external pressure and sluggish domestic demand, with market competition becoming increasingly intense and significant uncertainty surrounding future export prospects.