Damage is done: China exports to US in May see biggest drop since Covid as trade flows reroute to Asean

[SINGAPORE] While the US and China seemed to have avoided a devastating economic conflict with a framework agreement on Wednesday (Jun 11) after two days of intense negotiations, damage to the world’s richest trading relationship has already been done.

Based on figures from Trade Data Monitor, Chinese shipments to the US in May plummeted 34.4 per cent year on year to US$28.8 billion – the steepest decline since pandemic disruptions began in February 2020, as Beijing rerouted trade flows.

Meanwhile, Chinese imports from the US in May fell 17.9 per cent to US$10.8 billion, suggesting a “collapsing” trading relationship between the two biggest economies, noted John Miller, chief economic analyst at Trade Data Monitor.