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China's Exports and Imports Surge Ahead of Trump Tariff Deadline

BEIJING () - China's exports saw renewed strength in June, with imports also showing recovery, as manufacturers accelerated deliveries to take advantage of an unstable trade agreement between Beijing and Washington before an upcoming August cutoff date.

Outbound deliveries increased by 5.8% compared to the previous year, surpassing the average prediction of 5.0% growth from economist surveys.

Import levels increased by 1.1%, after dropping 3.4% in May. Analysts expected an increase of 1.3%.

The pace of export growth decreased to 4.8% in May following strong increases in March and April, as U.S. President Donald Trump's intensification of the trade conflict began to have an impact and the advantages from previous early shipments diminished.

Trade relations seemed to have become more stable in June following an agreement between US and Chinese officials to renew a delicate ceasefire established during discussions held in Geneva in May. This deal had faced challenges prior to the meetings due to various export restrictions that affected supply lines for important sectors on both sides of the Pacific.

However, as Trump expands his international trade campaign with additional taxes on more allies, experts warn that Beijing might suffer indirectly due to American influence over third nations that serve as key transit points for Chinese products.

President Trump has just introduced a 40% tax on goods entering the U.S. that pass through Vietnam, an action that might weaken Chinese producers attempting to redirect their cargo to escape increased charges.

The U.S. president has additionally warned of imposing a 10% fee on goods coming from BRICS nations, with China being one of the original members, increasing additional dangers for Beijing.

Beijing has until August 12 to secure a long-term agreement with the administration.

Adding to the difficulties, conflicts with the European Union have grown more severe. Before an important meeting later this month, the EU alleged that China has saturated the worldwide market with surplus production and supported Russia's wartime economic system.

China's June trade surplus came in at $114.7 billion, up from $103.22 billion in May.

(Reporting by Joe Cash and Ethan Wang; Editing by Sam Holmes)

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