Over the five years since 2018, China has significantly reduced its share of exports to the United States, falling from 22% to less than 13%. This trend stemmed from the ongoing trade war and growing geopolitical tensions between the two nations. Nevertheless, China not only avoided a major economic shock but swiftly adjusted the geography of its exports, reports the Baltimore Chronicle, citing Bloomberg.
According to updated Bloomberg data, Beijing managed to offset the trade decline with the U.S. by deepening ties with Southeast Asian nations (ASEAN) and the European Union. The export share to ASEAN countries grew from under 13% in 2018 to over 15% in 2023, while exports to the EU remained stable at around 16%. This redistribution was driven by deeper regional economic integration and China’s role as a global manufacturing hub.
The Chinese government actively promoted broader trade partnerships under the Regional Comprehensive Economic Partnership (RCEP), which includes many Asian countries such as Japan, South Korea, and Australia. This support allowed Chinese producers to remain competitive, particularly amid U.S. efforts to reduce dependency on Chinese supply chains in strategic sectors like microchips and electronics.
Another factor in China’s export resilience is the increase in trade with Hong Kong, which serves as a transshipment point for goods entering Western markets. Trade also expanded with Russia, India, and Latin America, highlighting China’s flexible economic strategy in times of global uncertainty.
Although the U.S. remains one of China’s largest trading partners by volume, the shift away from over-reliance on the American market has become apparent. Analysts suggest this trend is likely to continue in the long term, as China’s diversification strategy helps it adapt to global risks and political changes.
Earlier we wrote that U.S. considers sanctions against China’s COMAC over C919 aircraft.