Overview

• China's consumer price index (CPI) dropped 0.1% year-on-year in April, marking the third consecutive month of decline.
• Producer prices fell 2.7% in April, an accelerated decline from March, reflecting persistent deflationary pressures in China's economy.
• President Trump suggested reducing U.S. tariffs on Chinese imports to 80%, though Beijing continues to push for a complete rollback of levies.
• China's exports rose in April, driven by rerouted trade to Southeast Asia, offsetting sharp declines in shipments to the United States.
• Chinese policymakers have implemented interest rate cuts and lowered banks' reserve requirements to stimulate lending and domestic demand.