China Finds New Buyers as US Tariffs Bite

China's exports are hitting new highs even as US tariffs bite, with Chinese goods finding eager buyers across Africa, South America, and beyond. As US tariffs on Chinese goods hit exports to America this year, China barely missed a beat, swiftly redirecting its vast manufacturing output to new markets across the globe, the New York Times reports. While American imports of everything from plastic forks to smartphones have tumbled—Chinese phone exports to the US fell 47%, computers 54%—China's shipments to developing economies in Africa and South America have soared, and exports to Europe and other Asian countries have also increased.

The shift is no accident, the Times notes. Beijing has spent years preparing for scenarios like this, investing heavily in manufacturing and proactively courting new customers. The result: China is on pace to set another export record this year despite the trade war. Trump's tariffs were designed to revive US manufacturing and cut reliance on China, but the impact has been mixed. While US companies have moved some supply chains to places like India and Vietnam, Chinese goods now flow in greater volumes to other regions. African nations, for example, are snapping up Chinese electric cars and solar panels at prices that often undercut local options.

Analysts say China is willing to accept slimmer profit margins in exchange for greater global influence, especially in Africa and other regions where US aid has receded. According to figures released last month, Chinese exports rose 8.3% year-on-year in September, easily beating analysts' forecasts, the Wall Street Journal reports. "China's trade resilience shows that US tariffs aren't everything," said Lynn Song, ING's chief economist for Greater China.

story continues below

Some countries are growing wary—Vietnam and the EU worry about the flood of Chinese goods and are considering their own trade barriers. But for many developing economies, access to cheap Chinese technology and vehicles is a game-changer, even if it means growing trade deficits. Trump's recent tariff reductions may stabilize US-China trade for now, analysts say, but more tariffs targeting industries like pharmaceuticals and drones could be on the horizon.