China’s share of global container exports hit a record 40% on a rolling three-month basis, up 2.5% in nine months, the EU Chamber of Commerce in China’s president said. One tariff economist said the rise may reflect rerouting, not a larger share of global trade.
Jens Eskelund, the chamber’s president, warned that cheaper Chinese goods are squeezing European manufacturers and deepening the trade imbalance. The article says U.S. tariffs may have pushed Chinese exporters toward other markets and transshipments—routing parts through countries with lower tariffs for assembly before sale into the U.S.
A White House report released last month claimed the U.S. lost $19 billion–$26 billion in tax revenue through transshipments, with China the primary culprit. The administration has broadened its definition to include goods linked to China or involving it in a product’s supply chain. Jeremi Suri of the University of Texas at Austin said tariffs were pushing countries further away and eroding U.S. credibility as a trade partner.
