China Leaning On Southeast Asia To Counter US Tariff Wall? What Latest Ports Data Reveals

Chinese exports showed resilience at the end of April despite steep U.S. tariffs threatening to decrease trade flow.

According to Ministry of Transport data, Chinese ports processed 6.7 million containers in the seven days through April 27, a 6.6% rise from a month earlier.

Chinese ports processed 285 million tons of cargo for the reported week, a 9% increase from the previous month.

A Bloomberg report suggests Chinese firms may have ramped up shipments to Southeast Asia and other regions where U.S. tariffs mostly remain suspended.

The report also noted a 30% surge in Chinese international cargo flights in the four weeks ending April 27, compared to a year earlier, likely driven by booming sales on e-commerce platforms like Temu and Shein ahead of the May 2 deadline to close the “de minimis” tariff loophole.

Donald Trump's tariffs have severely threatened trade between two of the world's largest economies. Both countries have imposed tariffs of over 100% on each other's goods.

However, the effect of tariffs on the Chinese economy is already visible, as factory activity in Asia's largest economy logged its steepest contraction in 16 months.

The effects of a trade war were also seen in the U.S., as the country's economy shrank 0.3% amid a surge in imports.  

However, both Washington and Beijing have recently toned down their rhetoric regarding a trade war.

Trump has said tariffs on China would be lowered at some point as the U.S. seeks a "fair trade" deal. Chinese government officials have signaled that they are assessing the proposals for a trade deal.

Meanwhile, the Financial Times reported that Chinese exporters are undervaluing goods sent to the U.S. or altering their descriptions to avoid the tariffs imposed by the Trump administration.

Chinese equity-focused exchange-traded funds, iShares China Large-Cap ETF (FXI) and iShares MSCI China ETF (MCHI), have gained 16% and 15.4%, respectively, year to date.

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