Housing prices, tariffs put pressure on China's economy

China’s economy showed signs of slowing in July as factory output and retail sales slowed and housing prices dropped further, according to data released Friday.

- BY ELAINE KURTENBACH

AN EMPLOYEE at a textile factory. Uncertainty is still looming over the world's second-largest economy.

Uncertainty over tariffs on exports to the United States is still looming over the world’s second-largest economy after President Trump extended a pause in sharp hikes in import duties for 90 days, beginning Monday, following a 90-day pause that began in May.

As officials worked toward a broader trade agreement, China reported earlier that its exports surged 7.2% in July year-on-year, while its imports grew at the fastest pace in a year, as businesses rushed to take advantage of the truce in Trump's trade war with Beijing.

But that also reflected a lower base for comparison, and manufacturers have slowed investments, hiring and production as they watch to see what comes. Chinese manufacturers also have ramped up shipments to Southeast Asia, Africa and other regions to help offset lost business in the U.S.