China floods the world with cheap exports after Trump’s tariffs

Nations coming under increasing pressure to act, but are wary of antagonising Beijing

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Containers at the port of Shanghai. Countries already embroiled in tariff negotiations with the Trump administration appear reluctant to take on a separate trade war with China. That is giving Beijing breathing room from US tariffs at heights that economists previously predicted would halve the nation's annual growth rate. PHOTO: AFP

(PHOTO: AFP)

China’s export engine has proved unstoppable during five months of sky-high US tariffs, sending the country hurtling towards a record US$1.2 trillion (S$1.5 trillion) trade surplus.

With access to the US curtailed, Chinese manufacturers have shown they are not backing down: Indian purchases hit an all-time high in August, shipments to Africa are on track for an annual record, and sales to Southeast Asia have exceeded their pandemic-era peak.

That across-the-board surge is causing alarm abroad, as governments weigh the potential damage to their domestic industries against the risk of antagonising Beijing - the top trading partner for over half the planet.

While so far only Mexico has hit back publicly in 2025, floating tariffs as high as 50 per cent on Chinese products including cars, auto parts and steel, other countries are coming under increasing pressure to act.

The Indian authorities have received 50 applications in recent weeks for investigations into goods dumping from nations including China and Vietnam, according to a person familiar with the matter who asked not to be identified as the information is not public.

Indonesia’s trade minister pledged to monitor a deluge of goods, after viral videos of Chinese vendors touting plans to export jeans and shirts for as little as 80 US cents to major cities caused outcry.