In the tariff war, China deflects and thrives

Chinese companies use Southeast Asia countries as an alternative route to dribble US tariffs and maintain commercial flow without falling into sanctions

While the tension between China and the United States remains on the rise, a new Chinese strategy begins to gain strength: diversion of commercial routes. Recent data reveal that Chinese companies are increasingly sending goods to the United States through Southeast Asian countries in an attempt to circumvent the heavy fares imposed by President Donald Trump.

According to data released by the United States Census, direct Chinese exports to the US country fell 43% in May in the annual comparison-a total equivalent to US $ 15 billion in products. Nevertheless, total exports of China grew 4.8% in the same period, thanks to the 15% increase in sales to members of the Southeast Asian Nations Association (Asean) and 12% increase to the European Union.

Read also: Trump attacks and BRICS reacts in a sovereign voice – the coffee

“The change is really impressive,” said Mark Williams, chief economist at Capital Economics consultancy. “We have seen this during the first US-China trade war. There was an immediate deviation: American imports from China plummeted, but rose strongly in Vietnam and Mexico.”

This practice, known as transshipmentit consists of sending goods from one country to another before they follow their final destination – in this case the US – with the aim of masking the actual origin of products and avoiding extra rates. However, Washington is not with his arms crossed.

Last week, the United States announced a trade agreement with Vietnam that includes a 40% rate on products that are re -exported by the Asian country, measured as a direct scam against Chinese strategy. The pressure increases further because the time period in the so-called “reciprocal” tariffs imposed by Trump expires on Wednesday, and any new agreement may be accompanied by new specific taxes to contain the commercial deviation.

Endless Trade War

Chinese movement reflects a constant adaptation to US protectionist policies, but also illuminates tariff boundaries as an effective commercial control tool. Although the initial goal was to reduce American dependence on Chinese products, the result has been a simple change of routes – and not necessarily a real drop in imports of these items.

Also, while Beijing adjusts their business strategies, other international fronts are also affected. Vietnam, now at the center of attention, faces increasing pressures to regularize its participation in this complex game of global trade. Countries that have not yet closed agreements with Washington are in danger of suffering similar retaliatory measures.

In the international scenario, other important news involving China draw attention:

Read also: Immigration: In Trump America, fear wears federal uniform – the coffee

China expands investments abroad to ensure strategic resources

Chinese companies are accelerating the acquisition of mines and mining projects in other countries, at a pace that has not been seen for over ten years. The goal is clear: to ensure access to essential raw materials to support the global economy-especially minerals used in technology and clean energies.

Experts warn that this movement represents a race against time. “Chinese companies are trying to complete a lot of mergers and acquisitions before the geopolitical situation gets even more complicated,” an industry analyst explained. This expansion brings both opportunities and risks, as competition for natural resources tends to heat up regional conflicts and generate criticism of local governments and environmental groups.

Controversial Project provides for Gaza Reconstruction with Trump and Musk inspiration

Another curious headline involved the Tony Blair Institute, which would have participated in an ambitious project for Gaza’s postwar reconstruction. According to documents seen by Financial Timesthe plan would include special economic zones named “Trump Riviera” and “Elon Musk Smart Manufacturing Zone”, in order to transform the Palestinian enclave into a modern and attractive commercial hub.

The project, led by Israeli entrepreneurs and supported by financial models at Boston Consulting Group, seeks to rethink Gaza as an economically self -sufficient area. However, the explicit mention of international figures such as Trump and Musk generated controversy, considering the sensitive political contexts involved.

Attacks in the Red Sea and Public Resumption of Khamenei

Meanwhile, in the Middle East region, a Greek -owned freighter ship was attacked in the Red Sea after the first alleged attack by the Houthis rebels in 2024. A few hours later, the Israeli Defense Minister stated in an X (former Twitter) publication, that targets associated with hethis were hit hard – including ports and an Yemen power plant.

In Iran, supreme leader Ayatollah Ali Khamenei reappeared in public for the first time since Israeli attacks on the country last month, marking a symbolic moment of resistance and recovery.

Elon Musk creates political party in the US after break with Trump

On the other side of the world, Elon Musk announced the creation of a new political party in the United States to combat what he calls the “single party system” that dominates the country. The billionaire decided to go to political actions after disagreement with Trump about an important domestic legislative proposal. Initially, the party should focus on strategic electoral disputes in Congress.

Climate Emergency in Texas

Finally, the United States face a humanitarian emergency in Texas, where the search for eleven missing girls in a summer camp has entered the third day. Meanwhile, the death toll caused by sudden floods has already surpassed 70 people, including 21 children. Authorities reported that the Guadalupe River in the central region of the state rose about eight meters in just 45 minutes at dawn on Friday, flooding roads and destroying homes.

Hong Kong tries to recover global financial center shine

After turbulent years-marked by pro-democracy protests, national security laws imposed by Beijing and strict sanitary restrictions during the pandemic-Hong Kong tries to find his place as an international financial hub. Kaye Wiggins, Financial Times which has recently returned from the city, tells how the local business environment has been changing.

Even with the challenges, there are signs of recovery. Multinational companies begin to return, and local authorities bet on renovations to attract foreign capital. But international trust is still fragile, and Hong Kong’s future will depend not only on his own efforts, but also on the delicate relationship between Beijing and the West.

While all this happens in the global scenario, there is even room for lighter news: the first Legoland in China, one of the largest in the world, officially opened its doors on Saturday in Shanghai. Among the attractions, there is a replica of the Great Wall of China fully built with Lego pieces-something that mixes culture, history and fun for families.

The world is still in constant movement, with commercial wars, humanitarian crises, ambitious projects and even new forms of entertainment. And in the midst of all this, China continues to seek alternative ways to maintain its economic power intact, even in the face of increasingly high barriers.

With information from Financial Times*