NewKerala.com

Key Points

China’s exports to India rose sharply as US trade tensions forced supply chain shifts. India’s electronics and machinery imports from China surged despite declining overall imports. The GTRI report warns nations to guard against dumping amid China’s aggressive export push. Global trade remains volatile with Middle East conflicts adding further uncertainty.

Key Points: China Exports to India Jump 12% as US Trade War Escalates

  • China’s exports to US fell 34.5% amid tariff war
  • India’s imports from China surged 22.4%
  • Electronics and machinery led India’s import growth
  • GTRI warns of potential dumping risks
3 min read

Amid trade war with US, China's export to India surged 12% in May 2025: GTRI

GTRI report reveals China’s exports to India surged 12% in May 2025 as US shipments plummeted amid trade tensions, signaling global supply chain shifts.

"A dramatic decline in China’s shipments to the U.S. is being partially offset by increased exports to other markets. – GTRI"

New Delhi, June 17

Amid tariff war with US, China increases its exports to other countries like India, European Union (EU), and the Association of Southeast Asian Nations (ASEAN) as per the May trade data, stated a report by the Global Trade Research Initiative (GTRI).

The report highlighted that China's latest trade data for May 2025 shows a significant shift in its export destinations, with a sharp decline in shipments to the United States.

As per the report, while China's overall exports rose modestly by 4.6 per cent, from USD 302.1 billion in May 2024 to USD 316.2 billion in May 2025, its exports to the U.S. fell drastically by 34.5 per cent, from USD 44 billion to USD 28.8 billion during the same period.

This steep drop in trade with the U.S. is being offset by increased exports to other regions. Exports to the EU rose by 12 per cent to USD 49.5 billion, to ASEAN by 15 per cent to USD 58.4 billion, and to India by 12.4 per cent to USD 11.13 billion.

This redirection in trade indicates how global supply chains are quickly adapting amid rising geopolitical and economic tensions. The report also warned countries to be cautious of any aggressive export push that could lead to the dumping of goods.

GTRI said, "A dramatic decline in China's shipments to the U.S. is being partially offset by increased exports to other markets. Countries should watch out for any incidence of export push by dumping".

India's own trade numbers confirm this shift. Although India's total merchandise imports slightly declined by 1.8 per cent year-on-year, from USD 61.7 billion in May 2024 to USD 60.6 billion in May 2025, the fall was mainly due to lower imports of oil and gold.

If petroleum, gold, and diamonds are excluded, imports rose by 12 per cent, from USD 36.8 billion to USD 41.2 billion.

Two major categories led this import growth: electronics, which rose 27.5 per cent to USD 9.1 billion, and machinery and computers, which increased by 22 per cent to USD 5 billion.

A significant part of these imports came from China, as India's combined imports from China and Hong Kong surged by 22.4 per cent to USD 12 billion from USD 9.8 billion last year.

On the export side, India's shipments to the U.S. grew by 17.3 per cent to USD 8.8 billion in May 2025, with smartphones playing a major role in this rise.

The data reflects ongoing trade tensions between the U.S. and China, which may continue unless a tariff agreement is reached.

For India, the global environment remains uncertain due to rising conflicts in the Middle East, involving Iran, Israel, Hamas, and the Houthis, which could disrupt key shipping routes and oil supplies.

Amid these global shifts, the report outlined that India should remain cautious, focus on balanced trade agreements, and improve the ease of doing business to strengthen its trade position.

- ANI

Share this article:

Reader Comments

R
Rahul K.
This is concerning. While China-US tensions benefit us temporarily with cheaper imports, we must be careful about becoming overdependent on Chinese goods again. Remember the 2020 border clashes? We should use this opportunity to boost Make in India, especially in electronics and machinery sectors. 🇮🇳
P
Priya M.
Interesting data! On one hand, Chinese imports help keep prices low for consumers, but at what cost to our domestic industries? The 27.5% jump in electronics imports is staggering. Hope the government is monitoring for dumping as warned by GTRI. Quality control is another big concern with Chinese products.
A
Arjun S.
China's trade pivot shows how global economics is changing. While we benefit now, India must play its cards smartly. Our 17.3% export growth to US is good news! Maybe we can position ourselves as alternative manufacturing hub while US-China fight. But we need better infrastructure and less red tape first.
S
Sunita R.
The smartphone export numbers show our potential! But why are we still importing so much from China? 🤔 We have the talent and capacity. Government should provide more incentives for local manufacturing. At this rate, trade deficit with China will keep growing despite PLI schemes.
V
Vikram J.
Let's not forget the strategic angle. China is using trade as geopolitical tool. Their 12% export increase to India isn't accidental - it's to maintain economic leverage while border tensions continue. We should diversify imports and strengthen QUAD trade partnerships as counterbalance.
N
Neha P.
As a small business owner, I see both sides. Chinese components are cheaper and help me compete, but quality issues cause headaches. Maybe the answer is gradual reduction - impose higher duties on finished goods but keep components affordable until Indian alternatives develop. Balance is key!

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50