Trade Winds Shift: China’s US Exodus Fuels India’s Import Boom

Image Source: The Secretariat

China reduced its exports to the US considerably, diverting shipments to India and other markets across the globe. New trade statistics show a sharp decline in Chinese exports to the US, while Chinese imports into India have increased significantly.

Shift in Trade Patterns
China's export to the US fell 34.5% in May 2025, from $44 billion to $28.8 billion.

To counter this decline, China increased exports to India by 12.4%, to $11.13 billion.

Chinese exports to the European Union and ASEAN also grew, by 12% and 15%, respectively.

Increased Share of India in Global Trade
Imports of electronics and machinery into India surged immensely, of which a significant portion was from China.

The country's overall merchandise imports declined marginally, while non-oil, non-gold imports rose by 12%.

India exports to America grew 17.3% driven by higher smartphone shipments.

Future Risks and Outlook
Experts warn of possible dumping risks as China seeks alternative markets.

Growing Middle East tensions and protectionism can further restructure world trade.

India must navigate these shifts carefully in a bid to maintain economic stability.

China's trade reorientation is the altering contours of world trade with India as an emerging player.

Sources: Deccan Chronicle, Fortune India, Business Today.