"At the beginning of his tariff standoff with Beijing, President Trump was confident in his strong hand. China's economy was reliant on U.S. consumers, he said, and so it would have to make some compromises or risk losing them. "China has been hit much harder than the USA, not even close," Trump wrote on Truth Social, the social media site he owns, in April."
"Six months later and it seems Beijing has simply circumnavigated the U.S. by focusing on increasing its exports to the rest of the world. The diversification has been so successful that China's export market is actually tracking significant growth despite the trade war. According to data released by the General Administration of Customs, China's shipments to the U.S. fell 27% in September, the sixth month of double-digit declines to its once most valuable customer. Meanwhile it charted strong growth to areas like the European Union (currently operating under a 15% tariff rate from the White House), leading to export growth to non-U.S. countries of 14.8%."
U.S. tariffs aimed at China have prompted China to redirect exports toward other global markets, reducing shipments to the U.S. by 27% in September. Exports to non-U.S. countries rose 14.8%, and overall exports increased 8.3% year-on-year in September. Strong demand from Europe and other markets offset declines to the U.S., despite a 15% tariff on the European Union by the White House. The World Bank projects China's GDP growth of 4.8% in 2025 and lowered U.S. growth to 1.4%. Banks report that both sides appear open to compromise, and markets expect negotiations to resume.
Read at Fortune
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