Companies redirected exports through other countries to avoid U.S. tariffs, and policymakers turned up investment in manufacturing and infrastructure.

China's economy is likely to have cooled in the second quarter after a solid start to the year, as trade tensions and a prolonged property downturn drag on demand, raising pressure on policymakers to roll out additional stimulus to underpin growth.

External demand continues to support Chinese economic growth, as the first-half trade surplus surged to a new high of $586bn.