China suffers U.S. tariff driven falls in exports and increased deflation concerns

China’s economic landscape is facing mounting challenges as exports to the United States plummet and consumer prices decline, sparking fears of deflation. The latest trade data reveals that Chinese exports to the U.S. fell by 34.5% in May 2025, marking the sharpest drop in over five years. This decline comes despite a temporary trade truce …

China’s manufacturing sector experiences decline amid Tariff chaos

China’s manufacturing activity took an unexpected hit in May 2025, marking its steepest decline since September 2022. The Caixin/S&P Global manufacturing PMI fell to 48.3, signalling contraction for the first time in eight months. This downturn comes as U.S. tariffs begin to weigh heavily on Chinese exports, dampening global demand and disrupting supply chains. The …

China’s industrial profit accelerates in April 2025 – despite Trump’s tariffs

Despite the heavy tariffs imposed by former U.S. President Donald Trump, China’s industrial sector has demonstrated remarkable resilience. In April 2025, industrial profits rose by 3%, marking the second consecutive month of growth. This increase was largely driven by Beijing’s strategic policy measures, which cushioned the impact of the tariffs and supported private enterprises. In …

China’s retail and industrial growth slows amid ongoing tariff driven economic uncertainty

China’s economy showed signs of slowing in April 2025, with both retail sales and industrial output missing expectations. Retail sales grew 5.1% year-on-year, falling short of analysts’ forecasts of 5.5% growth. The slowdown reflects weak consumer sentiment, driven by deflationary pressures and uncertainty in the housing market. While categories like gold and jewellery (+25.3%) and …

Trump tariff roll-back – a win for China? U.S. markets rejoice the ‘deal’

The U.S. stock market surged as investors cheered a breakthrough in trade negotiations between Washington and Beijing. The rollback of tariffs, announced as part of a new trade agreement, sent the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite soaring. The deal, which slashes ‘reciprocal’ tariffs on both sides, is seen as a major …

U.S. and China agree 90-day ‘reciprocal’ tariff pause and reduction deal

In a surprising breakthrough, the United States and China have agreed to suspend most tariffs on each other’s goods for 90 days, marking a significant step toward easing trade tensions between the world’s two largest economies. Following high-stakes negotiations in Geneva, representatives from both nations announced that reciprocal tariffs would be slashed from 125% to …

China’s Exports Defy Tariff Pressures, Surge 8.1% in April

Despite the weight of U.S. tariffs imposed by President Donald Trump, China’s export sector has shown remarkable resilience, posting an 8.1% increase in April 2025 compared to the previous year. This surge comes as a surprise, surpassing economists’ expectations of a modest 1.9% rise. While China’s outbound shipments to the U.S. plunged by over 21%, …

China to impose 34% retaliatory tariff on all goods imported from the U.S.

China has reportedly announced a significant escalation in its trade dispute with the United States, declaring a 34% retaliatory tariff on all U.S. goods. This move, set to take effect on 10th April 2025 and comes in response to the sweeping tariffs imposed by President Donald Trump’s administration earlier this week. The Chinese Ministry of …

China’s position on open-source artificial intelligence (AI) is upending the global AI race

China’s embrace of open-source artificial intelligence (AI) is revolutionising the global AI landscape, challenging traditional notions of innovation and competitiveness in this rapidly evolving field. Traditionally, the AI sector has been dominated by proprietary models and closed-source systems, particularly in the U.S. However, China has made a strategic pivot towards open-source initiatives, driven by trailblazers …

Baidu, once China’s generative AI leader – is battling to regain its position

Chinese tech giant Baidu has released two new free-to-use artificial intelligence models as it vies to regain its leading position in the country’s fiercely competitive AI space The Baidu models launched on Sunday 16th March 2025 included the company’s first reasoning-focused model and come ahead of plans to move towards an open-source strategy.  However, analysts reportedly said that while the release …

China’s exports miss forecasts as U.S. tariffs bite -imports record sharp decline

China’s exports in the January 2025 to February 2025 period rose 2.3% in U.S. dollar terms from a year earlier, significantly undershooting expectations of a 5% increase That marked the slowest growth since April 2024 last year when exports increased by just 1.5% on the year, according to recently released data. Imports surprised markets by …

China announces 7.2% increase in defence spending and targets around 5% growth for 2025

China has unveiled plans for 2025, announcing a 7.2% increase in defence spending alongside a GDP growth target of around 5% These decisions, revealed during the annual National People’s Congress in Beijing, reflect the nation’s strategic priorities amid a challenging and fast changing global landscape. The 7.2% rise in defence spending mirrors last year’s increase, …

China’s AI vs U.S. AI – competition heats up – and that’s good for business – isn’t it?

The escalating AI competition between the U.S. and China has taken a new turn with the emergence of DeepSeek, a Chinese AI startup that has introduced a low-cost AI model capable of rivaling the performance of OpenAI’s models. This development has significant implications for data centres and the broader technology sector. The rise of DeepSeek …

Apple and Google shares fall after China reportedly launches probes into Apple App Store practices and Google’s anti-trust issues

China Launches Probes into Google and Apple Over Antitrust Concerns China has recently initiated investigations into both Google and Apple, raising concerns over potential antitrust violations. The State Administration for Market Regulation (SAMR) is considering whether to formally investigate Apple’s App Store practices, particularly focusing on the fees Apple charges and its policies that block …

China’s DeepSeek low-cost challenger to AI rattles tech U.S. markets

U.S. technology stocks plunged as Chinese startup DeepSeek sparked concerns over competitiveness in AI and America’s lead in the sector, triggering a global sell-off DeepSeek launched a free, open-source large-language model in late December 2024, claiming it was developed in just two months at a cost of under $6 million. The developments have stoked concerns about the …

China’s fourth-quarter GDP grows at 5.4%

China’s economy expanded by 5.4% in the fourth quarter, surpassing market expectations, as a series of stimulus measures propelled the economy to meet Beijing’s growth target This final-quarter surge helped elevate China’s full-year GDP growth to 5.0% in 2024, with the official target of around 5%. In December 2024, retail sales increased by 3.7% from …

China’s electric vehicle boom is becoming increasingly focused on hybrids

Hybrid-powered vehicles are becoming more popular than battery-only ones in China, according to latest full-year reports, even as consumers move away from fossil-fuel-only cars. Market leader BYD reported that well over half of the 4.3 million passenger cars it sold in 2024 were hybrid-powered, marking a significant reversal from 2023. Chinese electric car start-ups that …

China initiates investigation into Nvidia as the microchip battle rumbles on

China has reportedly initiated a probe into Nvidia, the US computer chip manufacturer, over purported breaches of anti-monopoly regulations. The company’s shares fell by over 3% following the announcement, signalling the latest development in the ongoing tech conflict between the U.S. and China over the profitable semiconductor market. Over recent weeks, the U.S. imposed stricter …

Deflation worries linger as China’s industrial profits reportedly fall by 10% in October 2024

In October 2024, China’s industrial profits fell by 10% compared to the previous year, indicating that the stimulus measures have not yet countered the downturn in corporate earnings. This decline represents the third consecutive month of falling profits, succeeding a 27% year-on-year drop in September 2024, which was the most significant decrease since March 2020. …

Exports for China in October 2024 up sharply beating expectations

China exports reportedly rose by 12.7% year on year to $309.06 billion in October 2024 – the highest jump since March 2023 when they rose 14.8% according to recent data reports. Imports, however, declined by a more-than-expected 2.3% in October, according to customs data. The world’s second-largest economy is facing challenges with weakening domestic consumption …

China’s manufacturing output expands in October 2024 according to survey

China’s factory activity jumped back into expansion among smaller manufacturers in October 2024, according to a private survey report released on Friday 1st November 2024. In October 2024, the Caixin/S&P Global manufacturing purchasing managers’ index reached 50.3, surpassing the prediction of 49.7. The index stood at 49.3 in September 2024, 50.4 in August, and 49.8 in …

Apple smartphones return to top 5 rank in China following iPhone 16 release

Apple has returned to the top five smartphone vendors in China’s market during the third quarter, lifted by the release of the iPhone 16, according to data. Apple’s shipment growth remained steady year-on-year in the Q2, securing the company a second-place rank by market share in Q3. Following Apple, Huawei held the third position with …

China’s industrial profits have plummeted at the sharpest rate since the pandemic

In September 2024, China’s industrial profits fell at the fastest rate since the pandemic of 2020 began, according to China’s National Bureau of Statistics Following a 17.8% decrease in August 2024, profits in September 2024 plummeted by 27.1% from the previous year, reportedly the most significant drop since the 34.9% decline in March 2020, according …

IMF cuts China’s growth as property market concerns grow

The International Monetary Fund (IMF) has issued a warning about the potential decline of China’s property market while reducing its growth forecast for the world’s second-largest economy. In a report published Tuesday, The IMF has reduced its growth forecast for China this year to 4.8%, which is 0.2 percentage points below its July projection. For 2025, …

China reports GDP growth of 4.6% – above expectations

China’s National Bureau of Statistics announced on Friday that the GDP growth for the third quarter was 4.6% year-on-year, marginally above the 4.5% forecasted by economists. But slightly lower than the second quarter’s year-on-year growth of 4.7%. In terms of quarterly growth, the third quarter experienced a 0.9% increase, which is higher than the 0.7% …