China is hitting the world with a new export shock, flooding countries from Southeast Asia to Europe and Latin America with its goods, as President Trump’s tariffs close off the US market. The surge in exports has reshaped economies and geopolitics, with China’s trade surplus with the world reaching nearly $500 billion this year – a 40% increase from last year.
The flood of exports is driven by government policy and a slowing domestic economy, where Beijing has invested heavily in its manufacturing sectors to soften the blow of a real estate crisis. This has led to Chinese goods flooding into countries that are also facing pressure from Washington, with some benefiting from increased investment and others struggling to compete.
Countries such as Indonesia, Cambodia, and Vietnam are feeling the pinch, with garment factories closing and auto parts manufacturers shutting down due to competition from cheap Chinese goods. The situation is becoming increasingly complex, with supply chains bifurcating along geopolitical lines and countries having to choose between doing nothing or raising tariffs and using protectionist measures.
The US-China trade war has created a new model of economies that are shifting away from low-end manufacturing as they become more mature and developed, confounding economists. With the economic effect starting to show, China’s global market share for all categories of goods is rising sharply, despite the tariffs. Beijing is unlikely to change its export-oriented policies, which will continue to reshape economies around the world.
Source: https://www.nytimes.com/2025/06/17/business/tariffs-china-exports.html