How Tariffs Have Rewired China US Trade

Transpacific electronics trade is fraying, but not in the way it seems. According to data recently released at the Observatory of Economic Complexity (OEC.world), Chinese exports to the U.S. of computers, telephones, and electric batteries seemed to have entered freefall. But when we dig deeper, we find a different story: China hasn't stepped back, it is stepping sideways.

While finished goods may no longer be "Made in China," the parts that power them still are. China has been fueling new manufacturing hubs, such as Vietnam, Mexico, and India, that have become key sources of electronics for the United States.

2025 started with strong numbers for the trade between China and the US. In January, China's computer exports were up 39% year-over-year, phones 23%, and batteries 16%.

But in April and May, that trade took a nosedive:

• Computer exports from China to the US dropped by 43% YoY (from $3.7B in May 2024 to to $2.1B in May 2025)
• Telephones plunged by 67% YoY (from $3.4B to $1.1B)
• Batteries dipped by 27% (from $923M to $676M)

This wasn't a gradual shift, but a rewiring of international trade networks.

In fact, U.S. imports in these products have not dropped, they are being rerouted.

• Computers are up +64% YoY (Jan–Apr 2025 vs Jan-Apr 2024)
• Telephones up by +49%
• Electric Batteries up by +8.6%

So where are these goods coming from?

• In 2025 (Jan - April), Mexico exported nearly $24B in computers to the U.S, a 60% increase from 2024
• Vietnam nearly doubled telephone exports, sending over $8.5B worth this year compared to the same period last year
• India's phone exports are surging too, with an 84% YoY increase
• Taiwan remains a key source, shipping over $13B worth of computers, up 51%

What may look like a drop in exports is, in fact, a strategic pivot. While China sends fewer finished products to the U.S., it's increasingly exporting the parts needed to build them to the countries now supplying the U.S. market. The role of assembler is shifting, while China strengthens its role in the upstream electronics supply.

• In 2025 Vietnam imported $10.2B in integrated circuits from China (+65% YoY)
• India doubled its imports of Chinese telephones in 2025, reaching $5.2B
• Battery exports from China to India rose to $1.34B (+62%), and to Vietnam increased to $1.73B (+10%)
• Mexico, now a leading supplier of computers to the U.S., also increased imports of Chinese integrated circuits, reaching $2.9B (+26%)

This data supports the notion that China is powering the electronics pipeline even if it's no longer the face of the final product.

As trade uncertainties mount, the map of electronics exports is being redrawn. As U.S. policy realigns to reduce its dependence on China, it may well push China to specialize in high value added components.

For the latest international trade data, visit oec.world.