China just released monthly trade data showing that its exports rose about 4.5% in August. That’s a slower pace than the month before — and that slowdown probably comes down to another data point: China's exports to the United States are down a third from this time last year, thanks to President Donald Trump’s trade war.

Meanwhile, the Chinese government also reported shipments to other countries have been picking up.

China’s basically taking a shotgun approach to where it's exporting right now. It’s sending more goods to sub-Saharan Africa, India, Vietnam, and even Europe.

“I mean, one of the main issues facing China right now is that it has loads of manufacturing capacity, and that needs to go somewhere,” said Leah Fahy, China economist at Capital Economics.

She said that shotgun approach applies to what China’s exporting, too. Everything from toys and textiles to semiconductors, solar panels, and EVs.

“It’s in China’s best interest to have manufacturers and consumers across the world reliant on both its finished products, but also its intermediary products to go into their final goods,” Fahy said.

In other words, manufacturers in countries all around the world have a flood of cheap inputs at their disposal.

Kadee Russ, an economics professor at the University of California, Davis, said that’ll give them a competitive advantage over American manufacturers who are stuck paying the cost of tariffs.

“That means that U.S. producers, when they're trying to export abroad, they’re going to suffer from this cost disadvantage,” Russ said.

China’s also been pouring billions of dollars into research and development. Think AI models and chip manufacturing.

Russ said if the U.S. continues to distance itself from China, other countries could get those goods.

“Countries outside of the United States may end up having access to new Chinese technologies that United States does not,” Russ said.

That’s going to put the U.S. companies at a disadvantage.

Emily Blanchard, a professor at Dartmouth said innovation depends on access to the global economy.

“Where you can take the best ideas and the best suppliers, and find the best customer, who’s willing to pay the most for your product,” Blanchard said.

Blanchard said the relationships that are being built right now between exporters in China and importers in other countries are here to stay.

“And so that’s a strengthening of the economic fabric and fiber that does not include the United States,” Blanchard said. “And that’s not great news for U.S. firms; it’s not great news for U.S. dynamism.”

She said it could have consequences for U.S. economic growth.