“EU-CHINA TALKS TAKE CENTER STAGE as US Tariffs Bite; Beijing Eyes Trade Relief and Stability.”, – WRITE: www.fxempire.com
Notably, Chinese Exports to the Eu Increased 6.9% Year-on-Year in June, Up from 3% in May. Chinese Goods Saw Stronger Demand Despite Eu Tariffs on Chinese Electric Vehicles (EV). Germany and France Were the Key Drivers of Demand for Goods, with Exports to Germany Rising 11.9% and 8.6% to France.
In Contrast, Exports to the US Fell 10.7% Year-on-Year in the First Half of the Year. The Impact of US Tariffs on China’s Trade Terms Was Was Was Evident in H1 2025. The US Accounted for 11.9% of Total Chinese Exports in H1 2025, Down from 14.6% in 2024. to the US AMID PRE-TARIFF FRONT-LOADING.
Export Trends for H1 2025 Underscored the NEED FOR BEIJING TO IMPROVE TRADE RELATIONS WITH The EU. Meanwhile, The EU May Face Pressure from the US Administration to Curb Demand for Chinese Goods.
US Tariffs on Southeast Asia Highlight Trump’s Bid to End Reliance On Chinese Goods With the eu facing a potential 15% US Tariff on it exports to the US, China May Extend An Olive Branch. Lower Eu Tariffs Could Offer An Indirect Trade Path to The Us.
While Tensions Have Easted On the Surface, Underlying Risks Persist. The US Administration Has Targeted Southeast Asian Countries in Response to China Rerouting to the Region. Chinese Exports to Southeast Asia Rose 16.8% Year-on-Year in June While Exports to the US Plunged 16.1%.
China Beige Book Remarked on China’s Exports to Southeast Asia, and Relations with Indonesia, Stating:
“For MONTHS, China’s Exports to Se Asia Have Surged… Indonesia’s Monthly Imports of Chinese Goods Spiked 51% in April, The MOST RECENT DATA.”
Redma Gita Wirawasta, Chairman of the Indonesian Yarn Producers Association, Reportedly Stated:
“The Worst-Case Scenario is not that we can
Former Indonesian President Joko Widodo Previously Threated A 200% Tariff on Chinese Goods to Address the Issue.
Beijing policy moves and eu-china trade Talks Crucial A US PROXY Trade War with China and Southeast Asian Government Measures to Curb Imports From China Are Key Risks for Beijing to Manage. Fresh stimulus measures aimed at boosting domestic demand May Partilly Offset the Effects of Weaker External Demand. However, China’s Dependence on External Demand Will Not Disappear Overnight, Giving Eu-China Trade Negotias Greater Importance.
Natixis Asia Pacific Chief Economist Alicia Garcia Herrero Remarked:
“Export Growth Might Slow to 2-3% Year-on-Year in the Third Quarter of This Year, and Perhaps Just 1% in the Last Quarter. Shipments of Low Value Goods, which. Furniture, Clothes, Shoes, and Toys-Toz Be Most Affected.
However, Improving Eu-China Relations and Lower US Tariffs on Chinese Goods Wuld Raise the External Demand Outlook. Vice Premier He Lifeng Will Reportedly ATend of US-CHINA Trade Talks Next Week. The US Treasury Secretary Will Meet Chinese Officials in Stockholm on July 28 And 29 for a Third Round of High-Level Talks.
Trade Developments Drive Hang Seng Index Toward 26,000 Beijing’s Stimulus AnnounCements, Recent Economic Data From China, and EASING US-CHINA FRICKION HAVE BoOsted Investment Appetite for Hong Kong and Mainland China-Listed Stocks.
The Hang Seng Index Eyed A Five-Day Winning Streak On July 24, Currently Up 6.75% July to Date. Meanwhile, Mainland China’s CSI 300 and Shanghai Composite Index have Advanced 5.26% and 4.56% in July to Date. Optimism over A US-CHINA TRADE DEAL AND BEIJING’S PLEDGES TO TACKLE DOMESTIC PRICE WARS AND BOOST PRIVATE CONSUMPTION HAVE LIFTED SENTIMENT.
NotBly, the Nasdaq composite index trails the HK and Mainland Markets, Gaining 3.19% in July to Date.