Commentary: How the U.S.-China Trade War Helped Diversify China’s Exports
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As U.S. President Donald Trump embarks on his Asia tour this week, he is expected to meet with Chinese President Xi Jinping on the 30th. Just days ago, U.S. Secretary of the Treasury Scott Bessent stated that the U.S. and China had reached a substantive framework during the fifth round of bilateral trade negotiations held in Kuala Lumpur, Malaysia, which now awaits confirmation by the two heads of state. Bessent indicated that China is willing to purchase a large volume of American soybeans and will extend and reassess its export controls on rare earths for approximately one year. In return, the U.S. will avoid imposing 100% tariffs on China. However, China has yet to confirm the specific conclusions reached in Kuala Lumpur.
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- The US and China reached a tentative trade framework; China may buy more US soybeans and reassess rare earth export controls, while the US might suspend planned 100% tariffs, but details await confirmation.
- From January to September, China’s exports to the US fell 17%, but overall exports grew 6%, driven by significant increases to ASEAN, the EU, Latin America, and Africa.
- China’s export diversification has reduced reliance on the US, but challenges remain with domestic consumption and global concerns over low-priced Chinese goods.
- North Square International Group
- North Square International Group is mentioned as the organization where Liu Yi-ju serves as managing director. Liu Yi-ju is also an adjunct professor in the Department of Finance at National Taiwan University.
- April 2, 2025：
- Trump announced 'reciprocal tariffs' to the world.
- April 9, 2025：
- U.S. tariffs on China were briefly raised to 145%.
- After May 12, 2025：
- The 145% tariffs imposed starting April 9, 2025, were canceled.
- From January to September 2025：
- China's cumulative exports to the U.S. fell by 17% year-on-year; China's total export value grew by 6%.
- By August 2025：
- The U.S. levied reciprocal tariffs on many other countries.
- September 2025：
- China's exports to the U.S. decreased by 27% year-on-year and exports to partners other than the U.S. showed double-digit growth.
- the week of October 27, 2025：
- U.S. President Donald Trump embarks on his Asia tour.
- Just days before October 30, 2025：
- U.S. Secretary of the Treasury Scott Bessent stated that the U.S. and China had reached a substantive trade negotiation framework in Kuala Lumpur during the fifth round of trade talks.
- October 30, 2025：
- Trump is expected to meet Chinese President Xi Jinping.
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