China's exports surge amid decline in shipments to the US as trade war intensifies
Written By Wion Web Desk
Published: May 09, 2025, 11:29 IST | Updated: May 09, 2025, 11:29 IST
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Business & Economy: China's exports surged by 8.1 per cent year-on-year in April, surpassing economists’ expectations of a modest 2 per cent growth.
China's exports surged by 8.1 per cent year-on-year in April, surpassing economists’ expectations of a modest 2 per cent growth.
The strong performance came despite a significant drop in shipments to the United States, which plunged over 21 per cent amid ongoing trade tensions. While the overall export growth remains positive, the trade war with the US remains a key hurdle for China’s economy.
Trade between the two largest economies has slowed considerably since US President Donald Trump imposed various rounds of tariffs on China. Levies on many Chinese goods now reach as high as 145 per cent—with cumulative duties on some goods soaring to a whopping 245 per cent.
Beijing has responded with 125 per cent tariffs on imports of US goods, along with other measures targeting the US.
Shipments to the US fell by more than 21 per cent in April compared to the previous year, marking a stark contrast to the overall positive performance in other regions. China’s trade surplus with the United States was nearly $20.5 billion in April, down from about $27.2 billion a year earlier. In the first four months of the year, China’s exports to the US dropped 2.5 per cent from a year earlier, while imports from the US fell 4.7 per cent.
The Association of Southeast Asian Nations saw a significant surge of 20.8 per cent in April from a year earlier, accelerating from 11.6 per cent growth in March. Exports to Latin America also climbed 11.5 per cent. Shipments to India jumped nearly 16 per cent by value, and exports to Africa surged 15 per cent. The surge in trade with countries such as Vietnam, Malaysia, Indonesia, and Thailand helped mitigate the impact of declining demand from the US, highlighting China's shifting focus on diversifying its trade partnerships.
China’s exports to the European Union rose 8.3 per cent, while imports fell 16.5 per cent year-on-year. Exports had risen by 10.3 per cent, while imports had dropped 7.5 per cent in March.
The upcoming meeting between US and Chinese officials in Switzerland over the weekend has raised the prospects for a potential de-escalation in the ongoing trade war.
The planned meeting would mark the first high-level US-China trade talks since the latest tariff escalations in April. US Senator Steve Daines met Chinese Premier Li Qiang in Beijing in March.
While reaching a comprehensive deal is likely to be complex and time-consuming, a phased rollback of tariffs from both sides is possible, although analysts are split on the pace of such de-escalation.
Chinese authorities have intensified their stimulus efforts recently to mitigate the economic impact of tariffs. These actions include loosening monetary policy and providing support to businesses affected by tariffs.
In April, China’s factory activity dropped to its lowest level in 16 months, with new export orders falling to their weakest point since December 2022.
There are growing concerns that the negative effects of tariffs may soon affect the job market, with Goldman Sachs estimating that China could lose 16 million jobs—about 2 per cent of its workforce—in sectors tied to US-bound goods.
The latest purchasing managers' index (PMI) reveals a decline in employment across various sectors, as manufacturers cut back on production and put workers on paid leave.
To support exporters hit by tariffs, local Chinese governments and large companies have expressed willingness to help redirect their goods to the domestic market. However, this is expected to increase deflationary pressures in the country.