China Diverts Shipments Meant For US To India, Other Markets
China’s exports to the US have seen a sharp drop and those goods are being redirected to markets like India, the European Union, and ASEAN: GTRI
Chennai: The drop in trade between the US and China in May seems to have supported Indian exports to these countries as India recorded a growth in shipments. However, China seems to have diverted its goods to countries, including India, after its US exports fell in May.
India’s exports to the US and China were up in May. India’s shipments to the US were up 16.93 per cent to $8.8 billion in May against $7.5 billion in the same month last year, as per the preliminary data of the Commerce Ministry.
India’s exports to China saw a growth of 25.04 per cent to $1,6 billion from $1.3 billion in the year-ago month. According to the industry, the smaller US-China trade should have led to the growth in Indian exports.
As per the latest trade figures from China, the country’s exports to the US have seen a sharp drop in May. According to GTRI, those goods are being redirected to markets like India, the European Union, and ASEAN.
China’s overall exports grew modestly by 4.6 per cent from $302.1 billion in May 2024 to $316.2 billion in May 2025. China’s exports to the US plummeted by 34.5 per cent, from $44.0 billion in May 2024 to just $28.8 billion last month.
In May, Chinese exports to India were up 21.6 per cent to $10.13 billion against $8.4 billion in the year-ago month. “India’s import surge in electronics and machinery—much of it from China—and rising exports to the US suggest that global supply chains are adapting quickly,” said GTRI. India’s electronic goods imports grew 27 per cent and exports were up 57 per cent
Exports from China to the European Union were up 12 per cent to $49.5 billion, and ASEAN were up 15 per cent to $58.4 billion. “Countries should watch out for any incidence of export push by dumping,” said GTRI.
