In May EU leaders said they were ready to “work hand in hand” with China to deal with “common challenges”. But the Europeans’ short-lived friendliness was as much an attempt to manipulate the Americans as it was an attempt to woo the Chinese,

Since US President Donald Trump – just days into his second term – began imposing tariffs on China for its role in the flow of deadly opioids like fentanyl into the United States, Beijing’s message has been clear.

By Kevin Yao and Ellen Zhang BEIJING (Reuters) -Chinese banks extended 2.24 trillion yuan ($312 billion) in new loans in June, more than triple May's total, and beating analysts' forecasts, helped by stimulus measures and a trade truce with the United States.

China ended the first half of the year with a record trade surplus of about $586 billion after exports to the US began to stabilize, with factories riding out the tariff rollercoaster that upended global commerce.

Shoppers are taking advantage of a $42 billion government trade-in program aimed at boosting spending. But in recent weeks, some cities have started to cut back on the subsidies.

China and the Association of Southeast Asian Nations have agreed to submit a pact upgrading their free trade areas to their leaders for approval in October, according to China's foreign minister Wang Yi on Saturday.

Domestic politics in trading partner countries, as well as China's influence, are complicating Trump's tariff negotiations.

US apparel imports from China have plunged dramatically since April – and fashion companies plan further reductions.