China Exports Rise Amid Fragile Trade Truce

China's exports rose 5.8% year-on-year in June, driven by a temporary easing of U.S. tariffs and renewed trade talks, while imports increased by 1.1%, marking the first rise this year and supporting economic growth in the second quarter. Exports to the U.S. were still down 16% from a year earlier, though this was a significant improvement compared to May’s 34.5% decline, indicating a partial recovery. Despite these gains, analysts warn that the improvement may be short-lived due to persistent trade tensions, looming tariff deadlines, and the threat of new U.S. tariffs. China has expanded exports to Southeast Asia and the EU, but faces new European tariffs on autos, impacting that sector. The EU continues to accuse China of market flooding and supporting Russia's war economy. The outlook for Chinese trade remains uncertain amid ongoing U.S. and European pressures.