China's unexpectedly poor export performance as revealed on Tuesday is still largely down to wider economic headwinds. But underlying trade and investment trends point to an unmistakable long-term drift in commercial ties with the West.
Official data showed a 14.5% drop in July exports amid weak consumer demand in the world markets served by China — the fastest decline since the pandemic hit in 2020. Lower imports, meanwhile, highlighted the lackluster domestic Chinese picture.
For now, such cyclical factors outweigh any impact of calls by Western governments for companies to "de-risk" supply chains as a new era of distrust prompts the United States and Europe to cut trade reliance on China in strategic sectors.