Mike Chai aims to cut wage costs at his kitchen cabinet factory by about 30% to remain competitive against other Chinese firms, which have stopped selling to the U.S. due to steep tariffs and are now coming after his long-time customers in Australia, Reuters reported. Chai had already halved his workforce to 100 people since the pandemic and says he has no more room to trim. Instead, he is shortening shifts and asking workers to take unpaid leave - an increasingly common practice that has become a hidden deflationary force in the world's second-largest economy.

China's producer prices fell more than expected in July, while consumer prices were unchanged, underscoring the impact of sluggish domestic demand and persistent trade uncertainty on consumer and business sentiment, Reuters reported. Factory-gate prices have been declining for more than two years, and Saturday's data suggest early-stage efforts to tackle price competition have yet to yield significant results. Deflationary pressures have prompted Chinese authorities to address overcapacity in key industries.

Chinese automakers are shipping cars to Europe through the Red Sea and Suez Canal, nearly two years after the Iran-backed Houthi militia in Yemen started attacking vessels in the critical Middle East transit route, the New York Times reported. Other automakers are still shipping cars from Asia by way of a much longer, and expensive, trip around Africa. Last month, at least 14 car-carrier ships traveled from Chinese ports to Europe through the Red Sea and Suez Canal, according to a new analysis by Lloyd’s List Intelligence, a British maritime information service.

The collapse of China South City Holdings Ltd. into potential liquidation is not just a cautionary tale for a single developer but a microcosm of the broader challenges facing China's real estate sector, according to a Bloomberg News reported. As the company's creditors weigh whether to accelerate its wind-up hearing in August 2025, the case underscores the fragility of a property market that has long relied on speculative growth and opaque financing structures. Yet, the implications extend far beyond one firm.

Despite Washington and Beijing locking horns many times this year, China’s economy has remained mostly unshaken, EuroNews.com reported. According to data released on Thursday, the nation's exports surged 7.2% in July from a year earlier, while its imports grew at the fastest pace in a year. This came as businesses rushed to take advantage of a lull in President Donald Trump’s trade war with Beijing, after both sides agreed to temporarily reduce tariffs until 12 August. The US tariff on Chinese goods had previously reached 145%.

Indian Prime Minister Narendra Modi will visit China for the first time in over seven years, a government source said on Wednesday, in a further sign of a diplomatic thaw with Beijing as tensions with the United States rise, Reuters reported. Modi will go to China for a summit of the multilateral Shanghai Cooperation Organisation that begins on Aug. 31, the government source, with direct knowledge of the matter, told Reuters. India's foreign ministry did not immediately respond to a request for comment. His trip will come at a time when India's relationship with the U.S.

China is a nation of savers. The Chinese government wants its people to spend more and save less. It also wants them to take on more debt, all for the sake of saving the economy from a four-year slump, the New York Times reported. The national financial regulator urged banks in March to expand consumer lending and offer more flexible repayment terms. Last month, policymakers promised to provide “innovative” financial services to boost consumption. Yet many Chinese consumers are wary. An alarming number of them are already defaulting on their debt.

A private gauge of China’s services sector showed activity expanded at the fastest pace in more than a year in July, as demand improved during the summer travel rush, the Wall Street Journal reported. The S&P Global China general services purchasing managers index rose to 52.6 last month from June’s 50.6, according to data released Tuesday by S&P Global. A reading above 50 suggests an expansion in activity, while a reading below suggests contraction.

Ever since President Trump began raising tariffs on goods from China during his first term, Chinese companies have raced to set up warehouses and factories in Southeast Asia, Mexico and elsewhere to bypass U.S. tariffs with indirect shipments to the American market via other countries, the New York Times reported. But on Thursday, Mr. Trump took aim at all indirect American imports, which he blames for part of the $1.2 trillion U.S. trade deficit. The president imposed 40 percent tariffs on so-called transshipments, which will take effect in a week.