world-economy

China's Industrial Surge Strains Global Trade Balance as State Support Widens Gap

China's manufacturing sector is expanding rapidly, with industrial profits jumping 24.7% in April—the fastest expansion in more than two years. The surge reflects stronger export demand, elevated producer prices, and gains concentrated in upstream industries. Factory activity also expanded faster than forecasts in May despite softer official readings. This manufacturing momentum contrasts sharply with industrial weakness in Japan, South Korea, and Taiwan, raising concerns about deepening global imbalances. International observers point to extensive state subsidies underpinning China's competitive edge. Air China Cargo is expanding its freighter network with a new scheduled service from Shanghai Pudong to Glasgow Prestwick. The carrier is also shifting three weekly routes from Guangzhou to Shanghai. These moves underscore China's intensifying focus on freight corridors serving European markets.