China's Export Growth Slows Amid Global Trade Tensions

China's exports rose 7% in July, falling short of economists' projections amidst global trade tensions. Investment in manufacturing has increased, but consumer demand in affluent markets remains weak. Imports also climbed, with notable growth in trade with Asian countries. Exports are expected to weaken as US and European tariffs take effect.

China's export growth in July showed a modest increase of 7% compared to the previous year, falling short of the 10% growth forecasted by economists. The shortfall reflects ongoing trade tensions and weakening demand from major markets like the United States.

In response, Chinese leaders have ramped up investment in the manufacturing sector to stimulate an economy still reeling from the pandemic. However, efforts to control inflation through higher interest rates have dampened consumer demand in wealthy Western nations.

Imports saw a 7.2% rise to $215.9 billion, driven by stronger trade with other Asian countries. While exports to the US grew by 2.4%, shipments to Southeast Asian countries surged by 11%. Despite a record trade surplus in previous months, July's surplus fell to $84.7 billion. Experts attribute the rise in vehicle exports, which jumped 18% in the first seven months of the year, to efforts to beat upcoming US and European tariffs.

(With inputs from agencies.)