China Shifts Exports Amid Looming US Tariff Truce

China's exports rose 7.2% year-on-year in July, surpassing expectations as firms accelerated shipments ahead of the US-China tariff truce expiration set for August 12. Exports to the US fell by about 22%, while exports to Southeast Asia and Africa surged at double-digit rates, demonstrating a shift toward non-US markets. Imports grew at the fastest pace in a year, defying expectations of a decline and highlighting recovering domestic demand. The export boost was driven by high-value products like semiconductors and machinery, while traditional sectors lagged. Analysts warn that the surge may be temporary due to front-loading before tariffs resume and the impact of new US tariffs targeting transshipped goods and products from Russian oil buyers. Rising global protectionism and the looming end of the trade truce add uncertainty to China's export outlook.