China Pushes Forward – Finding New Export Routes in Southeast Asia

Export to the South Soars
China’s exports to Southeast Asia have gained significant momentum in 2025. As the U.S. has raised tariffs to nearly 156 percent, Chinese manufacturers have increasingly redirected their goods towards Vietnam, Thailand, and Indonesia.

According to official figures, exports to Vietnam have risen by 18.8 percent from January to May, Thailand has seen a 20.9 percent increase, while Indonesia has imported 16.8 percent more compared to the same period last year.

ASEAN as a New Export Hub

The Southeast Asian economies are not only consumers of Chinese goods but also hosts for factories where Chinese components are assembled into finished products.

Vietnam and Thailand, in particular, stand out as magnets for factories, where products like cars and smartphones are produced for resale. “Exports are gradually diversifying, and Southeast Asian countries are becoming more and more important trade partners,” says economics professor Zhao Xijun from Renmin University in Beijing, according to SCMP.

Smart Shortcut or Tariff Evasion?

While some of China’s exports are used as inputs for local production, several analysts point out that some goods are transshipped to the West to avoid high U.S. tariffs.

In Indonesia, the phenomenon is so widespread that authorities announced tighter controls on certificates of origin in May. Jayant Menon from ISEAS-Yusof Ishak Institute calls Indonesia a prime example where the distinction between real consumption and transshipment is difficult to draw.

A Changing Trade Climate

In addition to serving as a springboard to the West, ASEAN countries are also developing an increasing appetite for Chinese goods.

With free trade agreements and a combined population of around 700 million, the region is becoming an increasingly attractive destination for Chinese exporters. “Consumer demand in ASEAN is rising,” states Zhao. A development that makes the region a sustainable alternative to a more closed-off U.S. market.

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