U.S. President Donald Trump's tariffs were intended to disrupt Chinese manufacturing, but Agilian Technology, an electronics maker serving mostly Western brands, experienced a turbulent 2025 with U.S. orders—over half its revenue—frozen for months and clients demanding production outside China [1]. The tariffs caused chaos for many Chinese companies, reflected in the country's official purchasing managers' index (PMI), which contracted for much of 2025, with April marking its weakest reading since December 2023 [1]. However, Beijing's retaliatory export controls on minerals and metals critical to U.S. firms helped reduce the impact of the levies, and in March, China's official PMI grew at its fastest pace in a year [1].
Agilian, a $30-million-a-year business, managed to recover and now values its position in China as crucial for growth, even as it pursues offshoring strategies [1]. China's trade surplus for the first two months of 2026 rose to $213.6 billion, up from $169.21 billion a year earlier, and in 2025, the surplus grew by a fifth to a record $1.2 trillion, equivalent to the GDP of the Netherlands [1]. Despite this, exports to the U.S. slumped 20% in 2025, negatively impacting manufacturers reliant on the American market, according to Agilian CEO Fabien Gaussorgues [1].
Nick Marro, principal economist for Asia at the Economist Intelligence Unit, stated, "The data confirms that Trump's tariffs indeed haven't derailed the momentum that we've seen in China's manufacturing sector," noting that the levies led to a restructuring of trade linkages and supply chains [1]. Industry executives and economists expect Trump's upcoming visit to China in May to extend a detente between the two rivals, with hopes for a framework to prevent trade tensions from escalating as they did last year [1]. He Yadong, spokesperson for China's Ministry of Commerce, emphasized the importance of implementing agreements from previous meetings and subsequent talks [1]. Denis Depoux, general manager of consultancy Roland Berger, described China's rare earths as "a leverage of mass destruction," likening them to a "nuclear weapon of trade" [1].
Agilian executives now view Trump's tariff policies as a guidepost for preparing for future uncertainties, underscoring the ongoing impact of trade tensions on business strategies [1].
CONCLUSION
Despite significant disruptions from U.S. tariffs, China's manufacturing sector has demonstrated resilience, with trade surplus figures reaching new highs and a recovery in PMI. While exports to the U.S. have declined, industry leaders anticipate continued dialogue and a possible extension of detente during Trump's upcoming visit. The market takeaway is cautiously optimistic, with businesses adapting to ongoing trade uncertainties.