How China’s Companies Are Responding to the US Trade War

Quick Summary:

Since 2018, Chinese firms have been pursuing internal reforms, supply chain restructurings, and accelerated innovation, with the result of "selective decoupling” from the U.S.

No government directive has mandated that “X percent of production capacity must be moved to Vietnam” or that firms “fully replace their technology stack.” Rather, countless enterprises – guided by risk perception, independent strategy, and market logic – are voluntarily or reactively making such shifts.Even if China-U.S.tensions were to ease in the future or tariffs were relaxed, the alternative pathways born out of crisis are likely to exhibit “stickiness” and irreversibility.

The relative importance of the United States in China’s export structure has declined yearly, while South–South trade between China and developing countries has been steadily expanding.

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Article Details

Author / Journalist: Leci Zhang and Xu Botao

Category: Economy

Markets: United StatesArgentinaAustraliaBrazilCambodiaChinaIndiaIndonesiaJapanSouth KoreaMalaysiaMexicoSri LankaTaiwanVietnam

Topics: Chinese Enterprises United Supply States Firms Been China Technological Companies Trade

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-04-16 @ 21:53:00 (4 days ago)

News Timezone: GMT +8:00

News Source URL: thediplomat.com

Language: English

Article Length: 4518 words

Reading Time: 26 minutes read

Sentences: 205 lines

Sentence Length: 23 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © The Diplomat

News ID: 27949756

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