China’s exports shrink, imports fall amid weak global demand

Chinese exports experienced a sharper decline than anticipated in May, while imports also fell, reflecting weak international demand and sluggish domestic consumption. In May, exports from the world’s second-largest economy dropped 7.5% year-on-year, the largest decrease since January, compared to 8.5% growth in April. Imports shrank by 4.5%, a slower rate than the 7.9% decline in the previous month.

The disappointing export performance indicates a lack of demand for Chinese products, as well as weak import performance, as China imports parts and materials from overseas to assemble finished goods for export. Following the release of this data, Asian stocks, the yuan, and the Australian dollar all dipped.

China’s post-pandemic stock boom has waned as small investors become more cautious about equities and opt for safer assets during the country’s stuttering economic recovery….