Overview

• China's consumer price index (CPI) fell 0.1% year-on-year in April, marking the third consecutive monthly decline, with producer prices dropping 2.7% during the same period.
• The ongoing deflationary pressures are attributed to weak domestic demand, challenges in the property sector, and global commodity price declines.
• US tariffs on Chinese imports have reached cumulative rates of up to 245%, with President Trump suggesting potential cuts to 80% as economic talks between the two nations begin in Switzerland.
• China has rerouted exports to Southeast Asia, leading to double-digit growth in trade with countries like Thailand, Indonesia, and Vietnam, despite a sharp drop in shipments to the US.
• Chinese policymakers have introduced monetary easing measures, including interest rate cuts and reduced bank reserve requirements, to boost lending and counteract economic headwinds.