China is increasingly rerouting its exports through Southeast Asia to circumvent the heavy tariffs imposed by the Trump administration, according to new data reported by the Financial Times. While the value of Chinese goods directly shipped to the U.S. has dropped sharply in 2025, Chinese exports to ASEAN countries and the European Union have jumped — suggesting that Chinese manufacturers are using neighboring countries as intermediaries to reach Western markets.
This shift highlights how Chinese companies are adapting their supply chains to avoid the brunt of U.S. tariffs. Exporters are either investing in factories in Southeast Asian countries or sending components there for final assembly, effectively disguising the Chinese origin of finished goods. U.S. officials have warned of a crackdown on this practice, but enforcement remains challenging given the complexity of global trade flows.
The trend also risks further trade friction, with Washington urging both ASEAN and EU governments to tighten oversight of origin labeling and transshipment practices. For China, the rerouting offers a temporary relief for its exporters, but it may add logistical costs and complicate long-term trade relationships.
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