*China Adopts Russia-Style Rerouting Tactics to Bypass U.S. Trade Pressure*
*China’s direct exports to the U.S. plunge, but total exports surge as trade flows shift through Southeast Asia and EU*
- In May 2025, Chinese exports to the U.S. dropped -43% YoY, a sharp $15 billion fall, amid rising geopolitical and tariff tensions.
- Surprisingly, China’s overall exports rose +4.8% YoY, as it ramped up shipments to non-U.S. markets.
- Exports routed via Vietnam surged +30%, totaling $3.4 billion in May alone — hinting at possible trade circumvention.
- China’s exports via Indonesia rose +25%, and shipments to ASEAN bloc and the EU grew +15% and +12% YoY respectively.
- The pattern resembles how Russia rerouted crude oil via India post-Ukraine war sanctions.
By refining or re-labelling products in a third country, the origin can be masked under trade rules. The phenomenon is known as *"country of origin masking" or "transshipment with transformation*