China's new home prices fell again in July, dropping 0.3% on month, but declines eased slightly in major cities as more local governments rolled out incentives for homebuyers, though further support is still needed, Reuters reported. The month-on-month decline was calculated by Reuters, based on data released by the National Bureau of Statistics (NBS) on Friday. In June, prices fell 0.3%. China's property market has been stuck in a severe slump for more than four years, with declining prices, sales, new investment and construction starts weighing on economic growth.
Read more
President Trump recently delayed for 90 days raising tariffs on China to give the two sides more time to negotiate a trade deal. Where the sides ultimately end up is an open question: The president hasn’t said how much more he will impose on China beyond the 30% currently in place if a deal isn’t reached, the Wall Street Journal reported. But this much is clear: The U.S.’s reliance on Chinese goods has fallen off since Trump first put tariffs on China in 2018. China now accounts for only about 12% of all U.S.
Read more
China’s new yuan loans dropped unexpectedly in July, sending yet another sign of weak demand in the economy despite Beijing’s efforts to bolster domestic demand, the Wall Street Journal reported. A measure of new yuan loans shrank by 50 billion yuan last month, according to official data released Wednesday by the People’s Bank of China, suggesting that borrowers rushed to repay funds. It marked the first such decline in about 20 years.
Read more
The severely indebted real estate developer China Evergrande, already in the process of liquidation, said on Tuesday it will be delisted from Hong Kong’s stock exchange on Aug. 25, another setback to mainland China’s property sector, the Associated Press reported. Evergrande was the world’s most heavily indebted real estate developer, with over $300 billion owed to banks and bondholders, when the court handed down a liquidation order in January 2024.
Read more
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.
Read more
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.
Read more
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.
Read more
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.
Read more
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%.
Read more