Most European companies in China have so far been able to limit the direct damage from the trade war, a survey has found, though a majority conceded their business environment has grown more challenging this year.

The drop in U.S.-bound shipments was offset by a surge in Chinese goods to Southeast Asia, Africa, Europe and Latin America.

China’s exports to the US fell sharply in April after Donald Trump’s triple-digit tariffs took effect, in another sign of the damage the US president’s trade war is causing the world’s two largest economies as they prepare for de-escalation talks.

China and the United States start their first major Trade War Two meeting on Saturday to pull back from what analysts describe as a lose-lose situation for their economies, without much clarity on what a win would look like for either side.

European stocks were rising Friday, with investors hopeful that a looming trade summit between China and the U.S. can ease global trade tensions. The continent's flagship Stoxx 600 climbed 0.5% in morning trading.

Close China watchers say they don’t expect Chinese Vice Premier He Lifeng to make any immediate concessions when the two sides meet in Switzerland this weekend.