China Possibly Rerouted Exports To US Via Third Countries, Including India: WTO
The increase in Chinese exports to Asian countries, including India, and in turn their exports to the US points towards possible rerouting of trade through third economies, amidst high tariffs, in 2025, finds WTO
Chennai: The increase in Chinese exports to Asian countries, including India, and in turn their exports to the US points towards possible rerouting of trade through third economies, amidst high tariffs, in 2025, finds WTO. The imports from China to the US declined 29 per cent in 2025 and India was one of the countries which gained from the shrinking share of Chinese exports.
US imports from China declined by 29 per cent, resulting in a drop in China’s market share of 4.4 percentage points in 2025 alone, from 13.8 per cent to 9.3 per cent.
At the same time, the United States imported significantly more from several Asian economies, including India, Indonesia, the Philippines, Chinese Taipei, Thailand and Viet Nam.
“Many of these economies also saw sizeable increases in imports from China in 2025, particularly among ASEAN members. These developments point to adjustments in global supply chains, including a possible trade diversion of China’s exports toward destinations facing lower tariffs, or the rerouting of trade through third economies,” finds WTO.
In the case of India, exports to the US grew 4.3 per cent between April and December 2025. In the initial months of the year, when China was charged with 245 per cent tariffs, Indian exporters were receiving US export orders through their Chinese counterparts, who did not want to lose their clients. Engineering goods, textiles, leather and footwear were some of the categories that received orders through Chinese companies.
Chinese exports to Asia as a whole increased by about $161 billion or by 10.6 per cent. Shipments grew strongly to Hong Kong by 15.5 per cent, India 12.8 per cent, and Chinese Taipei 11.2 per cent.
China’s exports surge was largely driven by stronger sales to Asia, Europe and several emerging markets, which helped offset weaker demand from the United States. Sales to the European Union increased by 8.4%, while exports to Association of Southeast Asian Nations (ASEAN) economies rose by 13.4 per cent.
Overall, China’s exports showed solid growth in 2025, although performance varied widely across export destinations. China’s total merchandise exports rose 5.5 per cent in value terms, reaching $3.77 trillion in 2025. Growth in volume terms was even higher, at 9.2 per cent.
During the previous Trump administration between 2017-2020 also, the higher tariffs were not able to make any dent on Chinese exports. China has been rerouting its goods to the US through third countries.
