ANZ Research says China’s economic separation from the United States is set to deepen as trade frictions escalate. Chief economist Raymond Yeung wrote that while overall exports have held steady, China has steadily diversified away from the US, with direct shipments to America falling to 12% of total exports as of August 2025, down from 19% in 2018.
Yeung said Beijing’s decision to impose rare-earth export restrictions signals growing confidence in achieving 5% economic growth this year, even in the face of a potential 100% US tariff. He added that the Trump administration is likely to move swiftly, possibly inviting retaliatory action from China.
“This tit-for-tat dynamic is likely to persist for some time,” Yeung wrote, describing it as the new normal in China–US economic decoupling, marked by cycles of negotiation and renewed tension.
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ps. Chinese equities are bouncing after their opening gap lower.
This article was written by Eamonn Sheridan at investinglive.com.
