Understanding China’s New Trade Patterns and Their Impact on India
How Trump Tariffs Changed Global Trade
China has changed its export strategies due to ongoing trade issues with the US. A report by the Global Trade Research Initiative (GTRI) shows that China is now sending more goods to countries like India, the European Union (EU), and the Association of Southeast Asian Nations (ASEAN).
Key Points from the GTRI Report
- China’s total exports grew by 4.6% from May 2024 to May 2025.
- Exports to the US dropped by 34.5% in the same period.
- Exports to the EU increased by 12% to $49.5 billion.
- Exports to ASEAN rose by 15% to $58.4 billion.
- Exports to India went up by 12.4% to $11.13 billion.
The report warns countries to be careful. It states, “A big drop in China’s shipments to the US is being partially offset by increased exports to other markets. Countries should watch out for any incidence of export push by dumping.”
India’s Changing Trade Patterns
India’s trade patterns are also shifting. Here are some important points:
What India is Importing
- India’s total imports decreased by 1.8% from May 2024 to May 2025.
- Imports excluding petroleum, gold, and diamonds increased by 12% to $41.2 billion.
- Electronics imports rose by 27.5% to $9.1 billion.
- Machinery and computer imports grew by 22% to $5 billion.
What India is Exporting
- India’s exports to the US increased by 17.3% to $8.8 billion in May 2025.
- Smartphones were a big part of this increase.
These changes show the ongoing trade tensions between the US and China. India needs to stay alert and focus on balanced trade agreements to strengthen its position in global trade.
Dealing with Global Uncertainties
India faces a complex global landscape. Conflicts in the Middle East could affect important shipping routes and oil supplies. To handle these changes, India should:
- Stay vigilant.
- Focus on balanced trade agreements.
- Improve business operations.
