China has shown itself to be more resilient against tariffs than many expected. But stockpiling, supplier renegotiations, and the tariff truce with the US may have only delayed the pain. Domestic demand remains the Achilles’ heel of China’s economy,

Official figures showed modest growth in the second quarter as exports shifted to other countries and Beijing invested in manufacturing and infrastructure.

For investors, the risk now is that the slow drip of news on tariffs leads to complacency about the damage they might cause-the Nasdaq stock index closed a record high yesterday.