China exports more to UK as it seeks to avoid US tariffs

An increase in Chinese exports to Britain in May has raised the prospect of a flood of cut-price goods entering the market as firms try to avoid Donald Trump's tariffs.

- Heather Stewart

Data published by the Chinese government showed a 16.1% increase in exports to the UK in May compared with the same month last year, hitting the highest level since February 2022.

That could be an early signal of an acceleration from the 10% annual rate of increase in April in data published by the Office for National Statistics.

UK policymakers are watching closely for evidence that cheap Chinese imports that might once have been bound for the US are arriving in British markets.

The Bank of England's rate-setting monetary policy committee has suggested it could be a welcome factor bearing down on inflation in the coming months. Sanjay Raja, a senior economist at Deutsche Bank, said: "Given lags in shipping, it's possible that we may be seeing the start of a trend in higher imports from Asia. This could have important consequences for inflation."

However, firms in some industries have expressed concerns about the prospect of Chinese products being "dumped" in Britain.