China Exports to US Fall Most Since 2020 Despite Trade Truce (2)

Chinese exports rose less than expected last month as the worst drop in shipments to the US in more than five years counteracted strong demand from other markets.

Exports rose almost 5% from a year ago to $316 billion in May, slower than economists’ forecast of 6% growth. Despite that slowdown, record shipments so far this year provided much-needed support for an economy that is stuck in deflation and struggling with weak domestic demand.

The difference reflects the two-speed nature of China’s economy, with strong industrial output and foreign demand but weak domestic private consumption.

External demand — which ...