China's Trade Surplus With ASEAN Now on Par With U.S.

As domestic sales continue to slump, China continues to look for new markets abroad and has found them in Southeast Asia. Singapore-based The Straits Times even speaks of cheap Chinese goods that have been flooding the region. U.S. tariffs on goods from their country exacerbated the pressure on Chinese producers to find new buyers, as retail sales in China continue to stay behind expectations.

Data from the General Administration of Customs China shows that the Chinese trade surplus with ASEAN countries has indeed been growing rapidly, in 2025 leveling with China's U.S. trade surplus that is shrinking. Last year, China's trade excess with ASEAN nations reached $276 billion, more than double the 2023 figure. Meanwhile, the Chinese trade surplus with the United States fell to $280 billion, down 22 percent in one year.

Sources interviewed by The Straits Times said that due to the U.S. tariffs on Chinese goods, producers from the country saw goods pile up and tried to unload them at reduced prices in neighboring regions, selling them directly and at a discount on international Chinese e-commerce platforms, for example Taobao. The report also states that garment industries in Indonesia were affected, resulting in layoffs, due to an oversupply of Chinese textiles. In Thailand, ceramics and handicrafts were hit, while in Japan, it was electric cars due to China's new export prowess in the sector.