Economic data shows revival in production and full employment
China’s exports grew by +5.8% year-on-year in June 2025, surpassing market expectations (+5.0%) and marking the first increase in four months. The growth was driven by firms rushing to fulfil orders before the upcoming August tariff deadline in the US-China trade truce. Exports rose notably to Japan (+6.6%), Taiwan (+3.4%), and the EU (+7.6%), while exports to the US fell at a softer pace (-16.1%). Rare-earth exports surged +32% month-on-month following eased restrictions.
“Higher export growth is anticipated next month, supported by front-loading of shipments ahead of the looming Aug-25 deadline.” MIDF also warned that “Chinese manufacturers face mounting challenges in using price cuts to grow global market share” amid persistent tariff risks.”
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