Yang Xite
According to a senior researcher at ANBOUND, China’s foreign trade is currently shifting from an ” export-oriented ” strategy to a ” re-export ” one. This change is driven by the pressure of high U.S. tariffs and the temporary 90-day tariff exemption the U.S. has granted to 75 other countries, before the U.S.-China trade talks in Geneva.
On May 9, China’s General Administration of Customs announced that in April, exports grew by 8.1% year-on-year, down from 12.4% in the previous month. Meanwhile, imports fell by 0.2%, compared to a 4.3% decline previously. The trade surplus stood at USD 96.18 billion, down from USD 102.64 billion. Additionally, China’s direct exports to the U.S. in April plunged 21% year-on-year, with their share dropping to a historic low of 10.5%. In contrast, exports through intermediary markets such as ASEAN and Latin America surged significantly. Notably, exports to ASEAN rose by 20.8% year-on-year to a record high of USD 60.4 billion, accounting for 19.1% of total exports. Re-exports to the U.S. via key hubs like Vietnam, Thailand, and Indonesia also soared. In terms of maritime shipping, as of the end of April, the number of container ships sailing directly from China to the U.S. had dropped by 33.8% compared to April 9, when reciprocal tariffs were implemented. At the same time, China’s overall exports remained relatively stable. Although both the deadweight tonnage of departing ships from the 20 major ports and the cargo throughput at key monitored ports initially declined after the tariffs took effect, they quickly rebounded, reaching levels higher than before the tariffs were implemented. These data points collectively indicate that Chinese enterprises have clearly engaged in short-term “re-export” activities to mitigate the impact of the tariffs.
Re-export trade is an important form of international trade and a key link in the operation of the global trade system. It plays a unique role in optimizing resource allocation and promoting the process of economic globalization. Re-export trade refers to a situation where the trade contract for goods is not directly signed between the producing country and the consuming country. Instead, it is signed separately by the producing country and the consuming country with a transit country, and the delivery is completed in the transit country. In other words, the trade process involves a “transit” in the transit country.
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