CHINA'S trade growth slowed sharply in May after strong expansions in the past six months as the government tightened control on speculative money.

Exports increased 1 percent from a year earlier to US$182.7 billion last month, the General Administration of Customs said today. The pace slowed from a jump of 14.7 percent in April.

Imports dropped 0.3 percent to US$162.3 billion, reversing a gain of 16.8 percent in April.

They left a trade surplus of US$20.4 billion in May, compared with April's surplus of US$18.2 billion and March's deficit of US$884 million.

The figures surprised the market that expected China's exports and imports to grow 7.4 percent and 6.6 percent respectively in May.

"China's trade growth tumbled in May," said Zhou Hao, an economist at Australia & New Zealand Banking Group Ltd. "The slowdown largely reflects the authorities' efforts to crack down on speculation on offshore and onshore interest rate differentials and yuan's appreciation."

He said the notable surge in trade in the past months was boosted by over-invoicing and round-tripping of goods with an intention to lure hot money.

Skeptical voices have been raised over the reliability of China's trade data as they were inconsistent with figures elsewhere and with the country's overall economic performance that was weakening.

Zhou said the outlook of Chinese exporters looks grim due to a stronger yuan and rising trade protectionism.

The European Union on Tuesday announced anti-dumping tariffs on China-made solar panels, cells and wafers. This will further reduce China's exports to its second-largest trading partner, Zhou said.

In the first five months, China's exports expanded 13.5 percent while imports rose 8.2 percent, creating a surplus of US$80.8 billion, the data showed.

Trade with the EU dropped 2.8 percent in the January-May period, while trade with Japan lost 8.9 percent. But shipments to and from the United States increased 6.9 percent during the period, the data showed.

Shanghai's trade decreased 2.5 percent to US$172.1 billion in the months to May.