In April, China's export economy experienced a significant boost, primarily driven by increased shipments to Southeast Asian nations, which helped to counterbalance a notable decline in exports to the United States due to new tariffs. According to data from the customs authority, exports increased by 8.1% in U.S. dollar terms compared to the previous year, a figure that exceeded the 1.9% rise anticipated by a Reuters poll. Conversely, imports saw a minor decrease of just 0.2%, defying economists' expectations of a 5.9% drop. The trade dynamics between China and the U.S. have shifted dramatically, with China's exports to the U.S. plummeting by over 21% in April year-on-year, and imports decreasing by nearly 14%. This decline follows a temporary surge in March when exporters hurried to ship goods before the implementation of higher tariffs. In the first four months of the year, China's exports to the U.S. fell by 2.5%, while imports from the U.S. decreased by 4.7%. The overall increase in exports may partly result from transshipment through third countries and pre-tariff contracts, according to Zhiwei Zhang, president and chief economist at Pinpoint Asset Management. Zhang anticipates that trade figures will gradually weaken over the coming months. China's trade relationship with the Association of Southeast Asian Nations (ASEAN) has strengthened, with exports to these countries surging by 20.8% in April compared to the previous year, up from an 11.6% increase in March. Vietnam and Malaysia continue to be key destinations for Chinese exports, while shipments to Indonesia and Thailand grew by 37% and 28%, respectively. In contrast, China's exports to the European Union rose by 8.3%, though imports from the EU fell by 16.5% year-on-year. These figures show a continuation of trends seen in March, where exports rose by 10.3% and imports dropped by 7.5%. The ongoing trade war between China and the U.S. has seen the U.S. President impose tariffs of 145% on Chinese imports, with China retaliating with 125% tariffs on American goods. Both countries have attempted to mitigate the economic impact by granting exemptions on certain essential products. However, the number of container ships traveling from China to the U.S. significantly declined by the end of April, according to Raymond Yeung, chief economist for Greater China at ANZ Bank. In response to the trade tensions, Chinese authorities have intensified stimulus measures to cushion the economy, including easing monetary policy and supporting businesses affected by tariffs. Despite these efforts, China's factory activity fell to a 16-month low in April, with new export orders reaching their lowest point since December 2022. Concerns are mounting that the economic fallout from tariffs will affect the job market. Goldman Sachs estimates that China could lose 16 million jobs, or 2% of its workforce, in sectors producing goods for the U.S. The latest purchasing managers' index suggests employment has declined across the board, as manufacturers begin to halt production and place workers on paid leave. Local governments and businesses in China have expressed their intention to help exporters impacted by tariffs redirect their products to the domestic market, a strategy that could exacerbate deflationary pressures in the country. China is poised to release its consumer and wholesale inflation data, which is expected to indicate ongoing deflation. Economists predict a 0.1% decline in the consumer price index and a 2.8% drop in the producer price index. In financial markets, the benchmark CSI 300 index fell by 0.23% on Friday, while the Chinese offshore yuan remained steady at 7.2483 per U.S. dollar. Investors are closely monitoring an upcoming meeting between U.S. and Chinese officials in Switzerland, which could lead to a potential easing of the trade war. The meeting represents the first high-level U.S.-China trade talks since the latest tariff escalations in April. Although reaching a comprehensive agreement may be complex and time-consuming, a phased reduction of tariffs is possible, though analysts are divided on how quickly this could happen. Laura Wang, an equity strategist at Morgan Stanley, suggests that if tariff de-escalation occurs, it would significantly benefit Chinese equities, although the negotiation process may be lengthy and unpredictable. Morgan Stanley projects that U.S. effective tariffs on Chinese goods could be reduced from current