Core Insights - Despite the high tariffs imposed by the U.S. government, China's export engine remains strong, with external demand from other economies largely offsetting the decline in exports to the U.S. [1][3] - In May, China's exports to the U.S. fell by nearly 35% year-on-year, yet overall exports grew by approximately 5%, driven by rapid trade expansion to other markets [3][5] - High-tech products are leading the growth in Chinese exports, with significant increases in exports of semiconductors, lithium batteries, electric vehicles, and mechanical components [5] Group 1 - The decline in exports to the U.S. is counterbalanced by strong demand from Southeast Asia, the EU, Latin America, and India [3][5] - The resilience of Chinese exports is attributed to the high liquidity of goods trade and the ability of Chinese exporters to adjust trade flows [3][5] - Chinese leading enterprises have enhanced their competitive edge by improving their position in the value chain, resulting in internationally competitive products [5] Group 2 - The growth in exports is expected to continue as long as global economic growth remains stable and end-user demand is healthy [5] - The increasing share of non-U.S. buyers in China's export market indicates a shift in trade dynamics [5] - Analysts suggest that bilateral tariffs are unlikely to fundamentally alter trade flows, allowing for sustained growth in Chinese exports [5]