U.S. Tariffs Don't Prevent Chinese Growth

Bloomberg News reports that Chinese exports “very unexpectedly” rose in July to a level 7.2% higher (in dollars) than in July 2024. The usual “economists” Bloomberg surveys had guessed an increase of just 5.6%. A share of that lower expected figure would have been attributable to the dollar’s drop in exchange value in July, but the actual 7.2% growth reported represents real physical export growth year to year. As Bloomberg admitted, “The resilience in overseas shipments comes despite the high tariffs imposed by the U.S., suggesting that global demand [i.e., outside the United States] remains a significant driver for China’s economy.” Trade with America is down to 11% of China’s total trade; exports to America down to 14% of total exports.