China’s export machine is breaking records again. Despite months of steep U.S. tariffs, Beijing is on track for a $1.2 trillion trade surplus this year. Exports to the U.S. may be shrinking but Chinese manufacturers have simply shifted elsewhere.
Sales to India hit all-time highs in August, shipments to Africa are set for a record year, and Southeast Asia is buying more than it did during the pandemic.That surge is sparking backlash. Countries from Mexico to Indonesia are raising alarms about being flooded with cheap Chinese goods from autos to clothing and some are weighing tariffs of their own. Yet many governments are hesitant to escalate, especially those already in tense negotiations with Washington.For China, the strategy is clear: if the U.S. consumer is off-limits, find others. Lower prices, a weaker yuan, and clever workarounds like routing goods through other countries have kept factories running. The result is booming exports abroad, even as China battles weak profits and persistent deflation at home.The bigger question is how long the world tolerates it. Pushing low-cost goods into global markets supports Chinese growth, but risks hollowing out industries elsewhere. For now, few want to ignite a second trade war but if the glut continues, pressure will build.Source: StockMarket.News
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