The Chinese economy continues to slide amid trade wars. The key economic indicators are falling, raising concerns about a recovery. China is on the verge of the largest drop in trade volumes. The country has always had high export figures. However, imposed restrictions and unwillingness to cooperate with Chinese suppliers are beginning to affect export earnings. In July, export volumes are forecast to plummet by 12.5% year-on-year. Notably, the last time such figures were recorded was during the pandemic. In addition, the manufacturing PMI slumped for four months in a row, projecting the worst July figures since February 2020 when exports shrank by 17.2% year-on-year. At that time, the country suffered from the pandemic, but today the economy has yet to recover. Meanwhile, analysts do not expect China to show robust performance in the third quarter this year. Beijing has so far only promised to take measures to spur domestic demand. The authorities intend to remove restrictions, revise the vacation program, and provide benefits for the purchase of electric cars. Besides, the government wants to motivate citizens to visit cafes more often and buy smart home appliances. Ministry of Commerce official Li Xingqian reported that the country had an extremely difficult situation with overseas shipments. It is not short vacations and citizens refraining from going to cafes that are preventing them from increasing, but non-economic factors and the politicization of trade.