China and the United States held two days of talks, which concluded Tuesday, aimed at reaching a deal to prevent the reimposition of sky-high tariff rates that threatened to cripple bilateral trade before a 90-day truce was agreed in May.
That agreement is due to expire on August 12. But there are indications that both sides want to push the date back further.
The truce has set US duties on Chinese goods at 30 percent, while Chinese levies on American products stand at 10 percent.
Despite bilateral relations going through "wind and rain", China and the United States "remain important economic and trade partners", Commerce Minister Wang Wentao told the delegation, headed by FedEx CEO and chair of the US-China Business Council Rajesh Subramaniam.
"Decoupling and cutting links won't work. Equal dialogue and consultation are the key to resolving differences," Wang said, according to a commerce ministry statement.
"China welcomes companies from all countries, including US companies, to invest in China."
US President Donald Trump has imposed a sweeping 10 percent tariff on allies and competitors alike, alongside steeper levels on steel, aluminium and autos.
Before their truce, the United States and China had levelled triple-digit levies against each other's goods as a trade war sparked by Trump spiralled into a tit-for-tat escalation.
China manufacturing sinks again in July as US trade talks stall
Beijing (AFP) July 31, 2025 - China's factory output shrank more than expected in July, official data showed on Thursday, logging its fourth straight month of contraction as Beijing battles to hammer out a trade deal with the United States.
The Purchasing Managers' Index -- a key measure of industrial output -- came in at 49.3, the National Bureau of Statistics (NBS) said, down from 49.7 in June and significantly off the 50-point mark separating growth and contraction.
A Bloomberg analysts' poll had forecast the index would be the same as in June.
"The manufacturing sector's business climate sank lower compared to the previous month," NBS statistician Zhao Qinghe said.
The decline was "driven by factors such as the industry's traditional slack period as well as high temperatures, heavy rains and floods in some areas", Zhao said.
China has struggled to maintain a strong economic recovery since the pandemic, as it fights a debt crisis in the crucial property sector, chronically low consumption and elevated youth unemployment.
A spate of natural disasters has also hit the country this summer, with at least 48 people killed and tens of thousands evacuated this week as northern China endured some of its worst floods in years.
"While the statistics bureau partly attributed the decline to weather-related disruptions to production, the breakdown suggests that demand has softened too," Zichun Huang, China economist at Capital Economics, said.
"The new export orders index dropped back as high tariffs began to weigh again," Huang added.
"More of the current weakness in demand appears to be domestic in nature," she said.
China's bruising trade war with the United States -- now on hold pending a deal -- has hit the export-dependent economy.
Beijing and Washington called a 90-day truce on the staggeringly high duties in May, and held two days of talks this week aimed at avoiding their reimposition on August 12.
Despite signs that both sides want to extend that deadline, the negotiations ended without an agreement.
HSBC banks lower profits on higher costs
London (AFP) July 30, 2025 -
Bank giant HSBC said Wednesday that group profits fell in the first half on higher costs but noted that it was "well positioned" to deal with the effects of US tariffs.
Profit after tax dropped by one third to $12.4 billion compared with the first six months of 2024, hit by restructuring costs and an impairment on its stake in a Chinese lender.
The London-headquartered bank is months into a shakeup aimed at simplifying the group's structure and delivering $1.5 billion in annual cost savings in 2027.
It comes as the bank sector faces volatile trading as a result of US President Donald Trump's tariffs onslaught.
"We have delivered these results in an ongoing period of uncertainty," chief executive Georges Elhedery said in call with reporters Wednesday.
"It has become increasingly important to simplify the organisation and make it more agile," he added.
The bank recorded a $2.1 billion impairment linked to its stake in China's Bank of Communications, which was recapitalised by the country's finance ministry this year.
HSBC last year reported a $3 billion charge on the value of its stake in the Chinese lender, which was hit by property loan writeoffs.
Elhedery said that HSBC is "making positive progress" in its structural overhaul, which began in October, shortly after he became chief executive.
Operating expenses increased four percent, which the bank partly attributed to restructuring and related costs.
The bank generates most of its revenue in Asia and has spent several years pivoting to the region, vowing to develop its wealth business and target fast-growing markets.
HSBC shares fell around 2.5 percent in morning deals on London's top-tier FTSE 100 index despite a dividend payment and plans to repurchase up to $3 billion of shares.
- Missed expectations -
Elhedery said HSBC is "well positioned to manage the changes and uncertainties prevalent within the global environment in which we operate, including in relation to tariffs".
He noted that a "broader macroeconomic deterioration" could impact returns in future years.
Profit before tax fell more than 26 percent to $15.8 billion, falling short of analyst expectations.
First-half revenue declined nine percent to $34.1 billion.
"Repositioning HSBC is not a simple task given its size and scale," said Russ Mould, investment director at AJ Bell.
"There are also challenges in its priority regions such as property market weakness in Hong Kong and mainland China.
"It means investors must continue to brace themselves for setbacks in its results well into 2026," he added.
In Hong Kong, HSBC shares in were down 3.8 percent at the close.
Morningstar senior equity analyst Michael Makdad said the bank "needs to make sure that shareholders in Asia remain on board with the strategic direction... centred on simplification and intensive cost-cutting, but without a radical overhaul of the entire business model".
Makdad added that its immediate challenge is to find a replacement for board chairman Mark Tucker, who will retire by the end of 2025 after eight years helping to steer Europe's largest bank.
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