China's export growth slowed to a three-month low in May as U.S. tariffs slammed shipments, while factory-gate deflation deepened to its worst level in two years, heaping pressure on the world's second-largest economy on both the domestic and external fronts.

China's consumer prices continued their four-month deflationary streak in May 2025, falling 0.1% year-on-year. This slight dip, which matched the previous two months and was a smaller decline than the 0.