China's Exports Beat Expectations After Trade Truce With U.S.

Shipments to the U.S., however, fell by 16.1% in June compared with a year earlier

- Jonathan Cheng

China's exports grew at a faster clip in June, topping market expectations as trade tensions with the U.S. eased following a round of bilateral talks.

Outbound shipments rose 5.8% in June from a year earlier, China's General Administration of Customs said Monday. The figure was better than many economists had predicted and represented an improvement from the 4.8% year-over-year increase in May.

Shipments to the U.S., however, fell by 16.1% in June compared with a year earlier, as hefty tariffs and uncertainty around the global tariff environment more generally stifled trade between the world's two largest economies.

Washington and Beijing reached a truce last month in their continuing trade dispute, agreeing to roll back most of their tariffs on one another.

During the meeting in London, U.S. and Chinese officials outlined a framework that involves China expediting shipments of rare-earth minerals and other critical inputs to the U.S., and Washington lifting some restrictions on access to advanced American technologies.

The results of that detente could be seen in last month's Chinese exports to the U.S. While the figure remained in negative territory, the 16.1% decline was a marked improvement from a tumble of 34.5% in May and a 21% fall in April.

Economists warned against interpreting the decline as a return to normalcy. They said any improvement was likely to be temporary and underscored how much President Trump's return to office has upended the commercial relationship between the countries.