China is sharply shifting its trade away from the US, data for May showed, ahead of talks between Washington and Beijing today aimed at cooling their tariff dispute.
Chinese exports to the US fell by more than a third compared with the year before, despite the countries agreeing a détente in their trade war.
China’s economy remains vulnerable, though: Prices fell again, cementing fears of deflation.
Still, analysts were upbeat about the prospects for the superpowers’ negotiations, pointing to Beijing’s decision to loosen controls on rare earths as a positive signal. “While the trade truce remains fragile… both sides now seem to be putting their best foot forward,” the founder of research firm Trivium wrote.
AD