BEIJING — One of the Chinese economy’s few growth drivers lost steam in July, according to the latest survey of businesses by China Beige Book.

“U.S.-bound shipments fell outright for the first time in several months,” the U.S.-based research firm said Friday. The findings are based on a survey of 1,436 Chinese businesses between July 20 and 28.

The last time China’s exports to the U.S. fell was in March, when they plunged more than 26% from a year ago, in line with the general trend of double-digit declines since trade tension escalated in April 2025, according to official data accessed via Wind Information.

Shipments to the U.S. rose by 14% in June, helping overall exports surge by 27% — the most in nearly five years. The growth came as businesses frontloaded shipments ahead of expected higher U.S. tariffs later in the summer. The rapid development of data centers to power AI has also driven demand for China-made parts.

The latest China Beige Book study found factory activity decelerated in July, with manufacturing seeing the worst performance in employment as all sectors surveyed saw job growth worsen from a year ago.

Retail sales also fell in July from the prior month and the year-ago period, the report said, noting travel and restaurants “saw a sharp on-year downturn.”

China’s top policymakers on Thursday emphasized the need to expand domestic demand and international trade cooperation, according to a state media readout. The statement underscored Beijing’s priority of achieving technological “breakthroughs.”

Trade data for July is due out Aug. 7, while retail sales and investment figures are expected on Aug. 17.