China’s export sector saw a stronger-than-expected rebound in June as businesses rushed to ship goods under a temporary tariff truce with the US
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China’s exports rose by 5.8 per cent year-on-year in June, outperforming both analysts’ expectations and May’s 4.8 per cent gain. Analysts attributed this boost to a temporary tariff truce between Beijing and Washington, prompting companies to accelerate shipments before a looming August deadline for higher duties.
This rise was largely fuelled by a rush of orders from importers and retailers in the United States, who resumed purchases of consumer goods like footwear, apparel and toys following the easing of trade tensions. The temporary suspension of tariffs had come after a renewed trade truce between President Donald Trump’s administration and the Chinese government.
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Geopolitical uncertainty lingers
Despite the June surge, trade between the two superpowers remained volatile. Exports to the US still fell 9.9 per cent in renminbi terms from January to June, though this was a smaller decline than previously recorded.
Fortune reported a 16 per cent year-on-year drop in June alone, which was a sharp improvement from May’s 34.5 per cent plunge. Analysts suggested that these figures reflected continued uncertainty as businesses grappled with unpredictable policy changes and the possibility of further tariff hikes by mid-August.
Global diversification strategy in motion
Economists observed that China’s export growth was increasingly supported by diversified trade relationships. Yuhan Zhang of The Conference Board told Financial Times that China had expanded its shipments to regions like Southeast Asia, Africa and Europe, even as exports to the US contracted.
Exports to Asean countries jumped 14.3 per cent in the first half of the year, with trade to Vietnam and Thailand showing particularly strong gains. Similarly, exports to the EU rose 7.9 per cent, although imports from the bloc fell by nearly 5 per cent.
Zhang attributed this diversification to Beijing’s intensified investment in advanced manufacturing and its ongoing industrial upgrading efforts. He not