China's export growth reached 23% year-on-year in US dollar terms in July 2026, beating forecasts, while imports rose 27.5%; the trade surplus narrowed to US$112.5bn, still above estimates; CNBC and SCMP attributed the export surge to global demand for AI infrastructure components and high-tech shipments, alongside a rush to beat a new 12.5% US tariff that replaced a temporary 10% levy in July
The United States and China's bilateral trade relationship totaled over US$650 billion in goods and services in 2024, making it the highest-stakes commercial axis in global great-power competition.
full dossier ›China's commerce ministry announced export controls on drones to the United States and blacklisted six US entities on August 5, calling the measures a restrained response to US sanctions imposed over forced labor and national security concerns; Beijing warned that further countermeasures remain available as Washington had recently imposed fresh tariffs on China and 59 other countries
The US on July 24 imposed new import duties of 10% or 12.5% on goods from 60 trading partners, including China, Japan, South Korea, Taiwan, the EU and Thailand, citing those countries' failure to enforce bans on goods made with forced labor. A presidential memorandum signed July 23 invoked Section 301 of the Trade Act of 1974, replacing a prior tariff layer that expired at midnight.
Nike has terminated the online distribution agreement with Topsports International, its largest Chinese retail partner, effective January 1, 2027, as CEO Elliott Hill moves to reassert direct control over Nike's digital channels in China to curb discounting; Japan's Nikkei and China's Caixin frame the move as a strategic retreat from a key but weakening market amid trade tensions
Commerce Department denied Polestar authorisation on June 25, citing its inability to isolate Geely Group software from its connected-vehicle systems; Volvo Cars, same Chinese parent, was approved in May because it manufactures in South Carolina with a separate software stack
The new 301-style investigation piles on top of the 30% baseline tariffs agreed in the June 11 deal and introduces a human-rights-based trade mechanism that Brussels and Ottawa find difficult to oppose
Asia-Pacific trade pact linking 15 nations, including China, Japan and South Korea in the same bloc for the first time, covering roughly 30 percent of global GDP.
Six active US-led tariff confrontations, from the US-China axis to the US-Brazil standoff, are redrawing supply chains and testing every major economy's alignment.
The Geneva-based intergovernmental body that governs trade rules for 166 member governments, under strain from a US-blocked appellate system and US budget arrears as of mid-2026.