Shipments reached 3.59 million units in April, an increase of 1.8% from the same period last year.

The figures come from China’s state-linked research data on handset shipments. Total smartphone shipments in the country stood at 25.73 million units, up 2.8% year on year.

Growth is still present, but only just. April marks the weakest performance for foreign brands in months and sits well below the strength recorded in the first quarter.

In that quarter, foreign brands expanded at a far quicker pace. Apple alone shipped 13.1 million iPhones in China in the first three months of the year, up from 9.2 million a year earlier.

That represents growth of about 42%. The foreign-brand category also posted double-digit gains over the same period.

China’s overall smartphone market, however, did not follow the same direction. Total shipments fell 3.3% in the first quarter to around 69 million units. Domestic brands took the bulk of sales, while foreign players held a smaller share of the market.

Huawei moved back into the top position in China during the quarter for the first time in five years. Apple held second place. Both companies were responsible for much of the activity in the premium segment.

Huawei’s growth was supported by strong demand for its Mate 80 series and its foldable Pura X device. Apple also saw solid demand for its iPhone 17 range. At the same time, Xiaomi recorded a steep decline, with shipments falling by around 35%.

Outside China, Apple reached a major milestone in the same period. It became the world’s largest smartphone maker in the first quarter of 2026, taking a 21% global market share.

Samsung followed, also at 21%. The iPhone 17 series performed strongly, taking several top positions in global sales rankings.

Back in China, the April slowdown for foreign brands stands out. The 1.8% rise shows demand has cooled compared with the earlier surge.

The figures do not break down individual companies, but Apple is still the dominant foreign company in the market. Other brands such as Samsung and Sony account for the remainder of the category.

The environment helps explain some of the movement. High memory chip costs have affected pricing across the industry.

Apple has largely avoided major price increases, while several competitors adjusted prices upward. That shift appears to have pulled some demand forward into earlier months.

There is also a seasonal pattern. April often shows weaker growth in smartphone markets as consumers wait for later product cycles. I note that this period usually sits between early-year demand spikes and the build-up to new launches later in the year.

Market-wide data supports this slowdown. March shipments reached 21.15 million units, down 7.1% year on year but up strongly from February. Domestic brands accounted for the vast majority of sales during that period, leaving foreign brands with a stable but limited share.

Apple has been working to steady its position in China after a difficult 2024. The strong first quarter suggested a recovery was under way, driven by both replacement demand and interest in the latest iPhone models.

April complicates that picture. One month does not define a trend, but it does interrupt the pace seen earlier in the year. The next set of data will be important. May and June figures will show whether demand has simply paused or whether growth is levelling out.

There is also a comparison effect to consider. Late 2025 saw unusually strong foreign-brand shipments, which makes current year-on-year growth harder to sustain. That base effect is likely to influence the rest of 2026 reporting.

China’s smartphone market is stable but not expanding. Foreign brands are still growing, but at a far slower rate than earlier in the year. Apple is still a key driver in the premium segment, but the scale has clearly eased.

The call, which began at 8 a.m. Washington time, was the first direct exchange between the two leaders in three months.

Earlier this year, Washington threatened to shut TikTok down unless its U.S. operations are transferred from Chinese parent company ByteDance to American ownership. 

Congress set a deadline of January 2025, though Trump has so far avoided enforcing it. He has admitted that banning the app outright could trigger a backlash among its millions of American users.

“I like TikTok; it helped get me elected,” Trump said on Thursday. “TikTok has tremendous value. The United States has that value in its hand because we’re the ones that have to approve it.”

Beijing, however, must sign off on any deal before it moves forward. Sources familiar with the talks say U.S. investors would take over TikTok’s American assets, but ByteDance would continue supplying the algorithm that drives the app’s powerful content recommendations. This unsettles U.S. lawmakers who argue that algorithmic control is inseparable from political influence.

“The platform may be American-owned, but if the algorithm is Chinese, the risk remains,” warned Senator Mark Warner, chairman of the Senate Intelligence Committee.

Trade and technology disputes

The TikTok talks are unfolding against a bigger economic fight. Since returning to office, Trump has raised tariffs on Chinese goods, some to levels not seen in nearly a century. Beijing retaliated with its own restrictions, leaving both economies struggling. 

The U.S. is battling high inflation and a record trade deficit with China, while China’s growth slowed to 4.2% in the second quarter of 2025, its weakest pace since the pandemic.

Despite these pressures, Trump insists he is close to securing better terms with Beijing. “We’re pretty close to a deal,” he said on Thursday, hinting at an extension of current trade terms. Washington is pressing China to buy more U.S. soybeans and Boeing aircraft, while also demanding a crackdown on fentanyl-related chemical exports—an issue the U.S. blames for soaring overdose deaths.

TikTok as leverage

Analysts say Beijing is using TikTok as a bargaining chip while holding back exports of rare-earth materials vital for U.S. technology production. “China’s effective use of sticks (rare earths) and carrots (TikTok) has turned things heavily in their favour,” said Scott Kennedy of the Center for Strategic and International Studies.

Washington, in turn, has restricted China’s access to advanced semiconductor designs, jet engines and specialised chemicals.

Political stakes

For Trump, TikTok represents more than a trade issue. It is also a political tool. Banning the platform risks alienating young voters who use it daily. Allowing it to continue under a restructured deal, however, lets him claim a win on national security without losing a vital channel of communication.

Diplomats are already eyeing a possible face-to-face meeting between Trump and Xi at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea next month. Such a meeting could test whether personal diplomacy can ease one of the most fractious U.S.–China relationships in decades.

Liu Pengyu, spokesperson for the Chinese embassy in Washington, said: “Heads-of-state diplomacy plays an irreplaceable role in providing strategic guidance for China-U.S. relations.”

As a sign of goodwill, Beijing recently allowed Wells Fargo banker Chenyue Mao to leave China after months of travel restrictions. Yet even with gestures like this, the unresolved issues—Taiwan, the South China Sea, and competing economic interests—make it obvious that a single phone call will not erase the deep mistrust between Washington and Beijing.

Markets didn’t wait to digest it. Wall Street futures plunged overnight. The Dow dropped nearly 2%. S&P 500 and Nasdaq futures weren’t spared either, falling 1.72% and 1.45% respectively. 

Europe and Asia took hits too, with London’s FTSE and Japan’s Nikkei both seeing steep losses. Safe havens? Not anymore. Even U.S. government bonds faced a sell-off.

The Chinese Finance Ministry confirmed the tariff hike late Wednesday, saying it would take effect at 12:01 p.m. Thursday. From that point on, American imports into China would face an 84% tariff—up from 34%.

“The tariff escalation against China by the United States simply piles mistakes on top of mistakes,” Beijing said. “It severely infringes on China’s legitimate rights and interests.”

This all began with a deadline. Trump demanded China reverse its own tariff by Tuesday. When that didn’t happen, the White House moved quickly. Press Secretary Karoline Leavitt spelt it out: “The president, when America is punched, he punches back harder, that’s why there will be 104% tariffs going into effect on China tonight at midnight.”

She also dangled a small olive branch. “The president would be gracious if President Xi wants to make a deal,” she added. But if there’s an opening for diplomacy, it’s getting harder to find.

For now, both Trump and China are digging in regarding the tariff changes. China’s Commerce Ministry blasted Washington’s move as “unilateral bullying” and “blackmail,” while warning of further countermeasures. 

The Ministry said the 104% tariff was groundless and a violation of international norms. Its response, it said, was to protect China’s sovereignty and development.

China’s retaliation didn’t stop at tariffs. Six U.S. tech firms—including Shield AI and Sierra Nevada Corp—have now been sanctioned. Beijing accused them of selling weapons to Taiwan and collaborating on military projects with the island. That’s a sharp escalation, and not just economic.

Trump, for his part, seems unfazed. At a press event with Israeli Prime Minister Netanyahu, he was asked whether the U.S. might ease off on its global tariff stance. His answer: “We’re not looking at that.”

In the background, over $5 trillion in U.S. market value has been wiped out since Trump’s new tariff policy was revealed. The S&P 500 is down nearly 20% from its peak, technically placing it in bear territory. Oil prices have also crashed, reaching lows not seen since 2021.

The economic pressure is real. But politically, Trump appears to be leaning into the chaos. He posted on social media urging American companies to bring their manufacturing home: “Don’t wait, do it now!”

China, however, has drawn a line. “We will fight to the end,” a statement from state-run Xinhua declared earlier this week. And now, it’s walking that talk.

What’s next? Neither side is backing down. Both have shown they’re willing to take the pain. But then, businesses and consumers are caught in the middle.