KDRTV News – Nairobi: China’s exports to the United States experienced a significant downturn in May, falling 12.7% month-on-month, as global trade uncertainty continued to disrupt supply chains and shake markets . The sharp decline underlines the persistent impact of geopolitical tensions on the world’s two largest economies, despite recent efforts towards a trade moratorium.
The latest customs data reveals that Chinese exports to the U.S. declined 34.5% year-on-year, marking the steepest drop since February 2020, when the COVID-19 pandemic first disrupted trade flows . Imports from the U.S. also saw a substantial decrease of over 18%, causing China’s trade surplus with America to shrink by 41.55% to $18 billion. This contraction shows the ongoing “decoupling” or “de-risking” trend, where companies are actively diversifying supply chains away from China to mitigate geopolitical risks.
While overall exports from China rose 4.8% last month in U.S. dollar terms, missing expectations, imports declined 3.4%, largely due to sluggish domestic demand. However, China has strategically offset some of these losses by boosting shipments to other regions. Exports to the Southeast Asian bloc jumped nearly 15%, while those to European Union countries and Africa rose 12% and over 33% respectively. This shift reflects China’s hub towards alternative markets, a trend observed since the initial imposition of tariffs.
The high-stakes trade talks between Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent continue, but analysts caution that existing tariffs, even after being lowered from prohibitive levels, will likely lead to slower export growth by year-end. The impact of these trade frictions extends beyond national economies, affecting global corporations with cross-border dependencies in technology, manufacturing, and agriculture.
For U.S. consumers, tariffs have historically translated to increased prices for everyday goods, from electronics to canned foods, as import costs rise. The ongoing unpredictability necessitates that businesses remain agile, diversify sourcing, and integrate geopolitical risk into their logistics decisions.
Read: https://www.kdrtv.co.ke/world/why-us-is-finding-it-hard-to-stop-chinas-microchip-advance/
