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China boosts exports amid weak growth, sparking trade fights
Exports grew 24% year over year in July, while second-quarter GDP rose only 4.3% and retail sales remained subdued, highlighting the policy-driven split between external strength and weaker domestic demand.
China is leaning harder on exports to offset a domestic slowdown, a strategy that has drawn fresh trade disputes abroad while also reshaping winners and losers at home, according to LiveMint Markets.
The outlet cited official data showing China’s exports rose 24% year over year in July, alongside a $113 billion trade surplus, after similar figures in June that keep the country on track for another trillion-dollar-plus surplus in 2026. Over the same period, China recorded 4.3% GDP growth in the second quarter and retail sales growth of minus 0.6% in May and 1.3% in June.
LiveMint Markets said the divergence reflects Beijing’s policy choices, including building market dominance in advanced manufacturing like electric vehicles, solar cells, and batteries. Western governments have labeled the push a second “China shock,” arguing subsidized Chinese EV and green-tech exports are undercutting producers and threatening industrial jobs, particularly in Europe.
Europe has responded with measures that include sectoral tariffs, more stringent cybersecurity requirements, and calls for China to allow its currency to appreciate, while the U.S. has continued to expand tariffs under President Donald Trump. The piece adds that Beijing has made only modest moves to boost consumption, and Chinese firms are increasingly shifting production directly into core consumer markets to navigate trade barriers and geopolitical fragmentation.