The White House has unveiled an AI tool to identify rerouted Chinese goods
The White House has unveiled an AI tool to detect goods that are being rerouted from China to the U.S. via third countries. According to The Guardian, the system is designed to analyze bills of lading and cargo manifests to identify such shipments.
White House Trade Advisor Peter Navarro cited an analysis by the U.S. Department of Commerce, which found that in 2025, $67 billion worth of Chinese goods were rerouted through Mexico, India, and Vietnam. He also mentioned Chinese motors installed in recliners imported from Vietnam.
The administration released a report titled *The Great Transhipment Scam*. It stated that the rerouting from China of components for power supplies, control panels, aluminum sheet, valves, plastic, and furniture parts through Mexico, Vietnam, Malaysia, Poland, or the UAE reduces or poses risks to jobs in U.S. industrial communities.
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According to The Guardian, imports from China in the year ending in June fell by 40% compared to the same period in 2024. At the same time, China’s share of the value added by U.S. imports did not decrease as significantly, the publication notes.
The columnist believes that combating the rerouting of goods will not address the root causes of China’s massive exports. In his view, the U.S. could put pressure on Beijing over its yuan exchange rate policy, in particular by using its authority under Section 301 of the Trade Act to impose tariffs on countries that Washington assesses as deliberately undervaluing their currencies.
The article also cites an estimate indicating that China’s share of global industrial goods exports has risen from 3% in 1995 to 20%. According to the data cited in the article, China’s current account surplus may amount to about 5% of its GDP.
