China's exports rose 23.9% year-on-year to $397.85 billion in July 2026, while imports climbed 27.5%, reflecting robust growth in technology and AI-related shipments despite geopolitical headwinds. The strong performance exceeded market estimates, though the trade surplus narrowed.
China's Commerce Ministry announced retaliatory measures against seven US entities, imposed stricter export controls on drones and related technology bound for the US, and restricted US agencies' role in Chinese factory inspections. The actions come in response to recent US moves targeting Chinese companies and ahead of a scheduled visit by President Xi Jinping to meet President Trump.
General Motors and SAIC Motor have renewed their 50-50 Chinese joint venture for another 20 years through 2047, following a major restructuring that will discontinue domestic Chevrolet sales in China while focusing on Buick and Cadillac brands and using China as an export hub.
China announced it is banning exports of dual-use items to 14 European Union entities, including German defense company Rheinmetall, effective immediately. The move is in direct retaliation for the EU's latest round of sanctions against Russia that penalized 14 Chinese enterprises.
China's Commerce Ministry said China is soliciting views from domestic companies, business associations, local governments, and U.S. business groups, while the United States is separately seeking public comments on the Board of Trade and the reciprocal tariff arrangements. The proposed framework covers about $30 billion worth of goods on each side, while the two countries continue to work out the board's structure, functions, and operating model.
The European Union and China have agreed to enter three months of negotiations aimed at resolving their massive trade imbalance and avoiding escalating trade tensions. The talks, formalized in their first joint statement in seven years, will focus on the bloc's €360bn annual import/export deficit with China, with an October deadline set for tangible results.
China has significantly reduced shipments of rare earth minerals to Japan, with May exports of materials used in powerful magnets dropping to negligible levels. The supply squeeze is pressuring Japanese companies and Prime Minister Sanae Takaichi's government to seek diplomatic resolution with Beijing over tensions related to Taiwan.
European leaders and G7 nations are responding to concerns about a flood of cheap Chinese exports threatening key industries, echoing fears of the original 'China shock' that disrupted Western manufacturing. The issue has become a central topic at the G7 summit as countries weigh policy responses to growing trade imbalances.
Chinese Vice Premier Zhang Guoqing will participate in a rare video conference hosted by French President Emmanuel Macron with G7 countries on Thursday to discuss global trade imbalances and low-priced Chinese exports, as Germany signals potential tougher trade measures.
French President Emmanuel Macron convened a video conference between G7 countries and China to address global economic imbalances, as the G7 summit pivots away from a single overarching statement toward separate policy declarations on topics including critical minerals and cancer research.
Asia-Pacific trade envoys gathered in Suzhou, China on May 22, 2026 for an APEC trade ministers' meeting focused on multilateral cooperation, trade imbalances, and supply chain resilience. China's International Trade Representative Li Chenggang chaired the opening as the commerce minister was absent due to urgent official business.
China's Ministry of Commerce issued an injunction blocking US sanctions against five Chinese refineries, including Hengli Petrochemical, that were accused of purchasing billions in Iranian oil. The move marks a significant escalation in the US-China dispute over Iran sanctions enforcement.
China unveiled new regulations aimed at countering 'unjustified' extraterritorial use of foreign laws, threatening EU firms with reciprocal measures if the bloc targets Chinese companies under proposed cybersecurity regulations. The move is seen as reinforcing China's 'legal shield' against external pressure amid the Iran war and Panama port dispute.
