Transpacific electronics trade is fraying, but not in the way it seems. According to data recently released at the Observatory of Economic Complexity (OEC.world), Chinese exports to the U.S. of computers, telephones, and electric batteries seemed to have entered freefall. But when we dig deeper, we find a different story: China hasn't stepped back, it is stepping sideways.
While finished goods may no longer be "Made in China," the parts that power them still are. China has been fueling new manufacturing hubs, such as Vietnam, Mexico, and India, that have become key sources of electronics for the United States.
2025 started with strong numbers for the trade between China and the US. In January, China's computer exports were up 39% year-over-year, phones 23%, and batteries 16%.
But in April and May, that trade took a nosedive:
This wasn't a gradual shift, but a rewiring of international trade networks.
In fact, U.S. imports in these products have not dropped, they are being rerouted.
So where are these goods coming from?
What may look like a drop in exports is, in fact, a strategic pivot. While China sends fewer finished products to the U.S., it's increasingly exporting the parts needed to build them to the countries now supplying the U.S. market. The role of assembler is shifting, while China strengthens its role in the upstream electronics supply.
This data supports the notion that China is powering the electronics pipeline even if it's no longer the face of the final product.
As trade uncertainties mount, the map of electronics exports is being redrawn. As U.S. policy realigns to reduce its dependence on China, it may well push China to specialize in high value added components.
For the latest international trade data, visit oec.world .