AsianFin -- For the first time, Vietnam has overtaken Japan as China’s third-largest export destination, reflecting shifting supply chains as companies navigate US tariffs by seeking alternative suppliers while continuing to source components from Chinese manufacturers.

China’s exports to Vietnam surged nearly 18% in 2024, reaching a record $162 billion, according to data released by China’s customs administration on Monday. This figure surpassed the $152 billion in exports to Japan, which previously held the third spot among China’s export markets.

The growth was primarily driven by a sharp rise in exports of parts to Vietnam, where they are assembled for re-export to the US and other markets. Electronics components such as screen modules and computer memory accounted for eight of the ten fastest-growing export categories, based on data through November 2024.