Good question — and yes, there are several reasons why many analysts say People’s Republic of China (China) is making trade effectively “impossible” (or much harder) — both by design and as a side effect of its shifting economic strategy. Here’s a breakdown of the main factors right now.

🚧 Why trade with China is becoming extremely difficult
1. China is importing far less — and exporting a lot more

Recent data show that Chinese imports have stagnated (or even declined) while exports have surged, widening China’s trade surplus.

Part of this stems from structural policies: under programs like Made in China 2025, China is pushing domestic production of many goods — even advanced ones — reducing its need to import foreign products.

That matters for global trade: if China doesn’t demand imports, other countries lose a key buyer — hurting export-heavy economies. As one recent summary put it: China is “exporting while importing little.”

2. New export controls and restrictions — especially on strategic/critical goods

In 2025, China expanded its restrictions on exports of “critical” materials (rare earths, certain minerals, advanced-tech inputs) and imposed stricter licensing requirements for companies abroad that use parts or materials tied to China.

That “export-control” approach mirrors policies from other countries but undercuts the openness of global supply chains — many industries now face disruptions or uncertainty if they rely on Chinese inputs.

As a result, businesses may find it hard to source raw materials or components from China — and even harder to plan long-term production or trade strategies because of regulatory uncertainty.

3. Domestic economic slowdown & weak Chinese demand

China’s economic growth has slowed, and consumer demand (especially for foreign goods) has weakened — reducing its appetite for imports.

Structural problems — e.g. a slump in real estate, weaker household balance sheets — have contributed to lower import demand.

With lower demand, foreign exporters (from U.S., Europe, other parts of the world) struggle to find buyers, which disrupts trade flows.

4. Strategic shift toward self-reliance and less dependency on external trade partners

Policies like “Made in China 2025” show that China is deliberately investing in domestic manufacturing capacities, including in high-tech and advanced manufacturing — a long-term goal to reduce reliance on foreign tech, components, and consumer goods.

That means over time China may avoid importing many types of goods, and may produce and consume internally — which reduces trade opportunities for exporters abroad.

Some economists argue this shift undermines global trade balance and could force other countries to rethink economic policies, trade partnerships, and supply chains.

5. Trade strategy uncertainty + geopolitical tensions

Recently, there’s been escalation in export controls, tariff measures, and general geopolitical friction (especially between China and other major economies).

That uncertainty discourages businesses from depending on China as a stable trade or supply-chain partner — many are diversifying away (to other countries) or reducing exposure.

In effect, even where trade remains possible, firms may view it as too risky or unpredictable — which reduces trade volume.

🌍 What “making trade impossible” really means — and who it hurts

For export-oriented companies outside China (especially Western manufacturers, suppliers of raw materials or intermediate goods), demand drop and export restrictions make their business harder.

For global supply chains, the restrictions — especially around critical materials — cause disruptions, higher costs, and uncertainty.

For countries depending on selling to China, weakening import demand means shrinking market — which could suppress growth and jobs.

For innovation and global tech industries, disruption in access to materials/inputs (like rare earths) may delay or limit production of electronics, EVs, clean energy systems, etc.