As tensions escalate between the world’s two largest economies, Chinese President Xi Jinping has issued a stark warning from Vietnam: “There are no winners in a trade war.” His remarks come amid the fallout from U.S. President Donald Trump’s aggressive new tariffs, which have shaken global markets and left Asian economies on edge.
Despite the looming restrictions, China’s exports surged unexpectedly in March, leaping 12.4% compared to the previous year — more than double Bloomberg’s projected 4.6% growth. This spike was driven by a rush to ship goods before Trump’s so-called “Liberation Day” tariffs took effect.
On the import side, China saw a 4.3% year-on-year decline — a sign that domestic consumption might be slowly recovering after months of contraction.
Lyu Daliang, spokesperson for China’s General Administration of Customs, acknowledged the external pressures but remained resolute: “The sky will not fall.”
Still, economists remain cautious. “This export boom is likely just front-loading ahead of the tariffs,” said Zhiwei Zhang of Pinpoint Asset Management. “A significant slowdown is expected in the coming months.”
Julian Evans-Pritchard of Capital Economics echoed the warning, suggesting it could take years for Chinese exports to return to current highs once the full force of U.S. tariffs sets in.
Asian markets opened higher on reports that electronics may be temporarily exempted, but that optimism may be short-lived. With uncertainty mounting and diplomatic tensions rising, the road ahead for global trade is anything but clear.