London/Beijing (dpa -AfX) – On the day of a new planned round of trade talks between China and the USA, the drastic consequences of the customs dispute have further illustrated. The trade between the two largest economies collapsed according to the Chinese customs data in May.
As stated from the communications of the authority in Beijing, exporting and imports decreased as clearly as in April. In May, exports in US dollars were calculated by 34.5 percent compared to May 2024, while imports lost by 18.1 percent.
Overall, China’s economy was able to increase its exports in May thanks to the increased exports to other regions, including Germany.
Talks in Great Britain
Observers are therefore eagerly awaiting results of the trade talks planned in London. Beijing sent Vice Prime Minister He Lifeng to Great Britain. From Washington, Finance Minister Scott Bessent, Minister of Commerce Howard Lutnick and the trade officer Jamieson Greer are sitting at the table.
Where and when the delegations meet remained unclear. A spokesman for the British government only confirmed that the round of talks would take place in the United Kingdom and that Great Britain is welcome.
Topics on the agenda
China and the United States had spoken to each other in Geneva in mid -May for the first time since the escalation in the customs dispute. At that time, both sides agreed to temporarily lower their tariffs for 90 days. In April, US President Donald Trump increased the surcharges on goods from China to up to 145 percent. With counter -tariffs, Beijing moved to imports from the USA to 125 percent and imposed export controls.
Those export controls on certain rare earths are likely to be the focus of the negotiations. These are raw materials that industry needs, for example, for electric motors and sensors. China dominates the world market for why the export restrictions on companies had triggered concern worldwide.
Beijing, on the other hand, could address the US restrictions on the sale of important technology products to China. The People’s Republic is still dependent on computer chips or important components in the aviation industry.
Did a phone call the way?
US President Trump and Chinese state and party leader XI Jinping had agreed the meeting on Thursday on a phone call. Both sides left open exactly which topics are on the agenda.
According to Trump, it is about discussing subtleties of the common trade agreement. His spokeswoman Karoline Leavitt said on US television that China had to comply with his side of the agreement. This could make the way for a more comprehensive agreement.
After the telephone call of the heads of state, China had rather cautiously commented and the United States warned to adhere to the mutual agreements of the agreement. The US side should objectively evaluate the progress made and take back its negative measures against China, Beijing demanded.
Effects on global economy
The trade conflict of the two states keeps the global economy in suspense. Trump has been a tough trade policy course against China since taking office. Despite the agreed agreement on a customs break in Geneva, the tone was recently rougher again – and the underlying disagreements are by no means solved.
The United States imported significantly more than they export. China, on the other hand, drives up its economic engine with exports and imported – also because of the weak demand in the People’s Republic. Trump wants to reduce this trade deficit with the help of higher tariffs and thus also strengthen domestic production. However, many economists warn that Trump’s additional import fees in the United States should lead to higher prices and less growth in the medium term.
Trump’s problem: Commercial deficit with China
According to the government, the United States exported in 2024 worth a good $ 143 billion to China, in return there were goods worth $ 439 billion to the United States. This results in a trade deficit of almost $ 300 billion.
Trump has repeatedly referred to “tariffs” as his favorite word. He has announced, threatened or already implemented numerous additional import fees. In addition to a new penalty tax of ten percent of the goods value to almost all imports, he has also announced specific, higher tariffs on imports of many countries. Large trading partners such as China and the EU are also affected ./jon/dp/stw