China's Exports Surpass Expectations Amid U.S.-China Trade Tensions

China's export figures exceeded expectations in July, with a 7.2% year-on-year increase, as the nation's manufacturers took advantage of a temporary tariff truce with the United States. This comes as concerns loom over potential new tariffs on transshipped goods and crucial products like chips and pharmaceuticals.

Despite this temporary boost, traders and investors watch closely, wary of whether the U.S. and China will reach a lasting trade agreement by the mid-August deadline. With President Trump hinting at further tariffs, global supply chains face the threat of disruption. Notably, imports into China grew 4.1%, indicating a rise in domestic demand.

While Chinese exports to the U.S. declined, deliveries to Southeast Asia surged, signaling the shifting dynamics in the trade landscape. As trade tensions persist, experts remain cautious about the future growth of China's exports, predicting a slowdown in the year's second half, influenced by ongoing tariff challenges.

(With inputs from agencies.)