China's exports to the US have significantly decreased due to tariffs imposed under President Trump's administration. However, China's overall export growth remains resilient, increasing by 5.9% in the first half of the year. This growth is fueled by rising trade with Southeast Asia, the EU, Latin America, and India. High-tech exports, particularly capital-intensive goods, are major contributors to this growth, offsetting declines in lower-end categories. Analysts suggest that Chinese exporters' ability to reroute exports has played a crucial role in sustaining this growth despite challenges.
Fortunately for Chinese exporters, external demand from other economies has helped offset much of the drag from the US,\\" wrote Lynn Song, ING's chief economist for Greater China, in a Wednesday note. China’s shipments to the US plunged nearly 35% from a year ago following Trump's "Liberation Day" tariff announcements. But China's export machine still grew about 5% in the same month because its fast-growing trade started to flow elsewhere.
Goldman Sachs analysts wrote that China's exports have been "resilient," in part thanks to trade rerouting. They noted that part of China's export resilience stems from "the fluidity of goods trade and Chinese exporters' ability to reroute trade flows."
High-tech goods are driving China's exports. Despite the decline in lower-end categories, growth in exports, particularly of high-tech and capital-intensive goods, continues to support the overall export growth.
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