Export Performance - In May, China's exports grew by 4.8% year-on-year, with a month-on-month increase of 0.1%[5] - Exports to the U.S. saw a significant decline, with a year-on-year drop from -21% to -34.5%[5] - The high tariff impact of 145% continued until mid-May, with a reduction to 30% announced on May 12[5] Tariff Impact - The average tariff rate on Chinese goods by the U.S. is estimated at around 42%, with approximately 40% of goods facing a rate of about 39.5%[6] - About 32% of goods are subjected to a 57% tariff rate, while the average tariff for other regions is around 12%[6] - The tariff reduction has not led to a significant increase in exports to the U.S., indicating limited immediate benefits[5][6] Trade Dynamics - There is a noted increase in China's exports to Africa (33%) and ASEAN (15%) in May, suggesting a shift towards re-exporting through these regions[6] - The shipping rates to the U.S. have increased significantly, with the CCFI indices for the East and West U.S. coasts rising by 21% and 23% respectively since May 9[9] - Despite the tariff adjustments, the overall demand for imports in the U.S. has declined, with a notable drop in import growth from 31.1% in March to 2.2% in April[11] Risks and Uncertainties - There remains considerable uncertainty regarding U.S.-China tariff policies, which could exert pressure on the Chinese economy[4][18] - The U.S. domestic economic uncertainty may lead to a decline in demand for Chinese goods, impacting future trade relations[4][18] - The potential for a rebound in Chinese exports to the U.S. in June is limited due to ongoing low shipping volumes compared to pre-April levels[10][13]