Following the United States’ imposition of additional tariffs on China earlier this year, Chinese exports to Asian countries have increased significantly, sparking concerns about “origin laundering” practices. Some Singapore logistics companies have reportedly received inquiries from Chinese manufacturers seeking assistance in obtaining certificates of origin to disguise Chinese goods as “Made in Singapore.”
According to a research report by Nomura economist Sonal Varma, Asian countries’ imports from China have accelerated markedly since President Trump first signed the executive order imposing tariffs on China in February. Growth jumped from 17.3% year-on-year in February to an average of 21.7% in March and April.
This surge represents approximately 8.5% of Asian countries’ total monthly imports from China, equivalent to roughly $90-100 billion annually. Countries experiencing increased imports from China include Indonesia, Thailand, Malaysia, India, Vietnam, and Singapore.
The imported goods include both products for local markets and those transshipped to third countries, with transshipment primarily aimed at avoiding tariffs and concealing origins. Recent increases have been observed in machinery, electronics, chemicals, toys, optical and medical instruments, rubber, and plastics.
Evidence suggests Vietnam primarily transships machinery, electronics, and plastic products; Malaysia and India focus on machinery and electronics; Indonesia handles chemicals; and Thailand specializes in electronics.
Singapore logistics company Penanshin’s director reported rejecting a request from a mattress manufacturer to help obtain Singapore origin certificates for products made entirely in China. Another freight company, MP Consol, noted receiving such “backdoor” inquiries regularly and maintains strict documentation requirements.
With the 90-day tariff grace period ending in early July, Singapore faces a 10% baseline tariff rate, relatively lower than many other regions, requiring stricter oversight from local small and medium enterprises.
Source: Central News Agency (Taiwan), June 18, 2025
https://www.cna.com.tw/news/acn/202506180094.aspx