China’s Negotiating Power Rises: Xi Strengthens His Hand with $1 Billion in Daily Exports to the U.S

China continues to export more than $1 billion worth of goods to the United States every day – despite tariffs of up to 55%. This resilience underscores President Xi’s growing leverage in ongoing trade negotiations with Washington, as both powers compete for control over global supply chains.

Xi Plays His Strongest Economic Cards Even as global trade slows, China’s export engine remains surprisingly strong. According to Bloomberg economists Chang Shu and David Qu, U.S. tariffs have so far done little to curb American imports from China. The reason is simple – China’s dominance in key sectors such as electronics, batteries, e-bikes, and rare earth metals makes it nearly impossible for U.S. companies to quickly shift production elsewhere. “China still holds a very strong position in global supply chains,” the economists said. “That gives it leverage in negotiations with U.S. importers, since relocating manufacturing will take years.”

E-Bikes and Copper Shipments Surge Despite Tariffs Despite steep tariffs, Chinese exports of several key products rose sharply in 2025.

🔹 E-bikes: Over $500 million exported to the U.S. in the three months ending September

🔹 Refined copper: Increased from nearly zero to $270 million

🔹 Electrical cables: Up 87% to $405 million Chinese customs data also show a rise in electronic cigarette exports, even though nearly all of the top 10 export categories to the U.S. recorded year-over-year declines. Overall, Chinese exports to the U.S. exceeded $100 billion in Q3, helping Beijing maintain economic growth in line with its annual targets and lift the bilateral trade surplus to $67 billion.

U.S. Importers Exploit “Loopholes” to Cut Costs According to Zhaopeng Xing, Chief China Strategist at Australia & New Zealand Banking Group (ANZ), American companies continue to find ways to partially bypass Trump’s tariffs. “Both economies can reduce their dependence on each other, but they’ll never bring it to zero,” Xing said. Many U.S. importers use re-routing through Vietnam or Mexico to avoid full tariff payments.

Some also declare customs values based on the first sale price in a third country, lowering taxable value before the goods enter the U.S. “There are many loopholes,” Xing added. “And the U.S. Customs Service simply doesn’t have the manpower to deal with them.”

Chinese Goods Keep Flowing Through E-Commerce China is also benefitting from the rise of cross-border e-commerce. American consumers continue to buy from platforms like Shein Group and PDD Holdings’ Temu, despite higher import fees. Chinese data reveal that since May, when the Trump administration tightened legislative loopholes, small parcels worth $5.4 billion have been shipped to the U.S. — even though they are now subject to a 54% tariff. Between July and September, Chinese companies also exported smartphones, laptops, tablets, and computer parts worth around $8 billion to U.S. buyers, highlighting the continued strength of U.S. demand for Chinese electronics.

Trade Balance Returns to Pre–Trade War Levels According to The Japan Times, China’s total exports to the U.S. in 2025 fell to $320 billion, roughly matching 2017 levels, before the first U.S.–China trade war. Still, China’s export resilience and adaptability to tariff pressures give Xi a strategic upper hand as the 90-day tariff truce nears its November deadline and Washington considers new trade measures.

One-Minute Summary 🔹 China exports over $1 billion in goods to the U.S. daily

🔹 Xi strengthens his hand through resilient supply chains

🔹 E-bike, copper, and cable exports are rising despite tariffs

🔹 U.S. importers use loopholes and re-routing to reduce costs

🔹 Total trade has fallen to pre–trade war levels, but China remains dominant

#china , #globaleconomy , #usa , #Tariffs , #Geopolitics

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