Xi's Export Machine Boosted by US Pressure on Allies Amidst Domestic Woes

• China's export juggernaut helped Xi Jinping meet his 5% growth target for 2025, despite domestic deflation and shrinking investment.
• Donald Trump's threats against US allies like Europe are creating opportunities for China to expand its trade relationships.
• Canadian PM Mark Carney signed a deal with China, rolling back EV tariffs and signaling closer ties.
• Xi Jinping seeks similar trade wins with UK PM Keir Starmer and German leader Friedrich Merz, with Trump also scheduled to visit China.
• The EU is considering minimum prices on electric cars instead of tariffs, potentially benefiting Chinese EV giants like BYD Co.

Why It Matters: US pressure on allies inadvertently strengthens China's export-driven growth strategy amidst its internal economic challenges.