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Home»Economy»Chinese Exports to US Decline 21% Amid Tariff War
Economy

Chinese Exports to US Decline 21% Amid Tariff War

Press RoomBy Press RoomMay 17, 2025No Comments2 Mins Read
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China is seeking new buyers amid the ongoing trade war with the United States. Chinese exports increased by 8.1% in April on an annualized basis, with imports declining 0.2%. Yet, imports to the United States fell 21% on the yearly, with imports declining 14%. There is no shortage of buyers for Chinese goods.

Exports from China to the Association of Southeast Asian Nations spiked 20.8% in April on an annualized basis after rising 11.6% the month prior. Malaysia and Vietnam have become the top buyers among the region. China exported around $27 billion in goods to Japan, $24 billion to South Korea, $13 billion to Taiwan, and $11 billion to Australia.

The European Union outpaced the US in Chinese exports last month after purchasing $90 billion worth of goods, an 8.3% increase, with Germany standing as the bloc’s top purchaser. The Chinese drastically reduced its purchases from the EU, with a 16.5% decrease for the month. In addition to geopolitical problems, the Comprehensive Agreement on Investment (CAI) remains unresolved since it was drafted in 2020 after tit-for-tat EU and Chinese sanctions. The deal would have permitted European companies to access the Chinese market, but the stalemate is likely to remain.

This does not mean that trade will simply be redirected in the face of America’s 145% tariffs. “The surge in overall exports could be partly due to transshipment through third countries and contracts that were signed before the tariffs were announced, Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said in a note. According to the US National Bureau of Statistics, China’s official purchasing managers’ index reading hit 49.0 in April, marking the first contraction in 2025. Production and new orders declined to 49.8 and 49.2, respectively, as manufacturing demand waned.

Our computer indicates that the Chinese economy will slow down this year as confidence is tested after years of rapid growth. The workforce is shrinking, and youth unemployment remains high. The nation is facing regional debt crises and real estate crises. Geopolitical tensions will be sharp as protectionism rises globally. China is continuing to militarize amid tensions in the South China Sea, and Xi’s new support for Russia in the Russia-Ukraine war will make it more difficult for China to attract foreign investment.


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