China’s monthly car exports topped 1m for the first time in June as overall overseas shipments from the world’s second biggest economy rose 27%. Official Chinese customs data showed that a stronger-than-expected trade performance kept China on track to match or beat last year’s record trade surplus of $1tn (£748bn), achieved despite Donald Trump’s curtailed tariff war. Sales of Chinese brands ranging from BYD to Jaecoo are booming, eating into the market shares of long-established brands, particularly in Europe. Analysis by the Mercator Institute for China Studies (Merics) in Berlin…
Tag: International trade
UK to halve tariff-free steel imports to counter glut of cheap Chinese metal
The UK government will halve the amount of tariff-free steel imports allowed in an attempt to counter a global oversupply of cheap Chinese metal and bolster its beleaguered local industry. New “safeguards” will be introduced on 1 July and will coincide with similar new limits being introduced by the EU for the same purposes. At the same time tariffs on steel imports above the duty-free quotas will be doubled to 50% of the product’s value. The quotas replace existing pre-Brexit rules that set import levels across the EU. The UK…
EU trade deficit with China reaches record €1bn a day, data shows
The EU’s trade deficit with China has reached a record €1bn (£0.8bn) a day, according to official trade data, fuelling concerns over the future of Europe’s “industrial backbone”. The gap between the EU’s imports from China and exports to China amounted to €31.9bn in April, according to the latest import and export data from the EU statistics body Eurostat. The data comes as European leaders prepare to meet on Thursday to discuss measures to address the growing trade imbalance, which includes the increased presence of Chinese electric cars – exported…
Germany urged to stop admiring Beijing and wake up to ‘China Shock 2.0’
Germany must stop admiring China’s success in the EU or it will sleepwalk into the kind of deindustrialisation the US experienced 25 years ago, a leading Brussels thinktank has said. With China’s surplus with Germany having doubled between 2024 and 2025 from $12bn (£9bn) to $25bn, creating a $94bn trade imbalance, the Centre for European Reform (CER) said Europe’s largest economy risked a repeat of what happened in the US in 2001 when a sudden surge in imports permanently hollowed out towns in the American midwest. “China Shock 1.0” not…
Fears of new China shock as EU industry’s reliance on imports grows
Europe is facing a fresh China shock that threatens to cannibalise local factories, leading to job losses and de facto colonisation of industry by Beijing, trade analysts and representatives have said. They fear the plunging exchange rate and support for Chinese “zombie firms” has echoes of the crisis in the US 25 years ago when the term “China shock” was coined. It referred to the impact of China bursting on to the global trade stage after becoming a member of the World Trade Organization, with soaring imports displacing local industries…
From sanctioned cars to beauty clinics, Russian rubles have flowed into China’s border towns since Ukraine war
Suited and booted in a navy twinset tracksuit and colourful high-top trainers, Wang Runguo is hustling. Darting across the gleaming floors of his cavernous car showroom, the 45-year-old from one of China’s poorest provinces is closing on yet another deal. It is all in a day’s work for the man whose salary has more than doubled in the past year thanks to a well-timed pivot: from corn to cars; from China to Russia. This time last year Wang was working for an agricultural company that grew corn and soya beans…
Trump and Xi meet in Beijing for key summit, with trade, the Iran war and AI set to dominate talks
US president Donald Trump has met with China’s leader Xi Jinping for a momentous summit that will pack negotiations on global conflict, international trade and the future of artificial intelligence into just over 24 hours. Trump arrived at the Great Hall of the People, an imposing Mao-era building that borders the western edge of Tiananmen Square, on Thursday morning for an opening ceremony followed by an hour of face to face talks with Xi. Rows of uniformed officers flanked the red carpet laid out in front of the Great Hall…
Trump-Xi summit live: US president preparing to meet China’s leader with trade, Taiwan and the Iran war set to dominate talks
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Trump due in China for high-stakes summit with Xi Jinping, as Iran war looms over talks
Donald Trump is due to arrive in Beijing on Wednesday evening, the first visit to China by a US president in nearly a decade, as he seeks to mend power and prestige weakened by the war in Iran. Trump will bring tech leaders, including Elon Musk of Tesla and Tim Cook of Apple, and plans for headline-grabbing deals. He has said he expects China’s leader, Xi Jinping, would “give me a big, fat hug when I get there”. But the Middle East conflict that Trump started, and seems unable to finish, will…
EU faces ‘China shock’ as EV imports drive Beijing’s record surplus with bloc
The EU is experiencing a prolonged “China shock” as a flood of Chinese EVs into Europe helped push Beijing to a record surplus with the bloc. New data showed China’s trade surplus – where its exports to the EU exceeded imports from the bloc – was $83bn (£61bn) in the first three months of 2026. China sold goods worth about $148bn to the EU in the first quarter, but imported just $65bn from the bloc, according to analysis of 2026 customs data by Mercator Institute for China Studies (Merics). The…