Trade Tensions Escalate as China’s US Exports Plummet Nearly 30% Despite Global Surge

China’s latest customs data, released on Monday, revealed a mixed trade picture: while the country’s overall exports reached their strongest level in half a year, shipments to the United States fell sharply, reflecting persistent strain from ongoing trade tensions.

In September, Chinese exports to the U.S. dropped by 27% compared with the same period a year earlier, marking the sixth month in a row of declines after a 33% fall in August. The continued slide coincides with the collapse of earlier trade talks between Beijing and Washington and the imposition of additional tariffs on both sides. The outlook has been further clouded by U.S. policies under President Donald Trump that seek to redirect manufacturing away from China. Recent friction intensified after Trump threatened to introduce tariffs of up to 100% on Chinese goods and placed new export limits on certain advanced software. In response, Beijing broadened restrictions on key technology exports such as rare earth materials and lithium-ion batteries and introduced new port fees that specifically affect American ships. These measures have raised uncertainty ahead of a planned meeting between Trump and President Xi Jinping later this month.

Despite weaker demand from the United States, China’s total exports to global markets showed notable strength. Overall shipments reached about $328.5 billion in September—an 8.3% increase from a year earlier and a clear improvement on the 4.4% growth seen in August. To cushion the effect of U.S. trade measures, Chinese exporters expanded their presence in other regions: sales to Southeast Asia grew roughly 15.6% year-on-year, while exports to Latin America and Africa climbed 15% and 56%, respectively. According to economist Gary Ng of Natixis, China’s export performance remains resilient because of the country’s competitive production costs and limited global alternatives for sourcing, even in the face of higher tariffs.

Imports also strengthened last month, rising 7.4% from a year earlier compared with a modest 1.3% increase in August. However, domestic demand continues to be restrained by sluggish consumer spending and ongoing weakness in China’s property sector.