Bloomberg reports that China's economy continued slowing in the second quarter, with sluggish domestic output and continuing trade tensions pulling growth down to the weakest pace since the early 1990s. Gross domestic product rose 6.2.% in the April-June period from a year earlier, below the 6.4% expansion in the first quarter and matching economists' estimates. In June, factory output rose 6.3%, retail sales rose 9.8%, while investment gained 5.8% in the first half of the year -- all three beating estimates. The slowdown adds to the pressure Chinese policy makers face as they attempt to negotiate a deal with the U.S. while balancing the objective of job creation with the need to defuse financial risks at home. Although Chinese negotiators are talking with their U.S. counterparts again, there is no certainty that a deal will be reached.

The Wall Street Journal reports that Huawei Technologies Co. is planning extensive layoffs at its U.S. operations, according to people familiar with the matter, as the Chinese technology giant continues to struggle with its American blacklisting.The layoffs are expected to affect workers at Huawei's U.S.-based research and development subsidiary, Futurewei Technologies, according to these people. The unit employs about 850 people in research labs across the U.S., including in Texas, California and Washington state.Huawei declined to comment. The exact number of layoffs couldn't be determined, but people familiar with the matter said they were expected to be in the hundreds. Some of Huawei's Chinese employees in the U.S. were being given the option of returning home and staying with the company, another person said.

The Wall Street Journal reports that U.S. manufacturers are shifting production to countries outside of China as trade tensions between the world's two biggest economies stretch into a second year. Companies that make Crocs shoes, Yeti beer coolers, Roomba vacuums and GoPro cameras are producing goods in other countries to avoid U.S. tariffs of as much as 25% on some $250 billion of imports from China. Apple Inc. also is considering shifting final assembly of some of its devices out of China to avoid U.S. tariffs. Furniture-maker Lovesac Co. is making about 60% of its furniture in China, down from 75% at the start of the year. "We have been shifting production to Vietnam very aggressively," said Shawn Nelson, chief executive of the Stamford, Conn., company. Mr. Nelson said he plans to have no production in China by the end of next year.