The trade war between the United States and China has led to a significant decrease in the share of Chinese goods in US imports. In the first half of 2023, China accounted for only 13.3% of US imports, down from 21.6% in 2017. This is the lowest level since 2003.
There are a number of factors contributing to this decline. One is the Trump administration's tariffs on Chinese goods. Another is the COVID-19 pandemic, which disrupted supply chains and led companies to look for alternative sources of goods. And finally, the Biden administration has continued to take a tough stance on China, which has made businesses more hesitant to rely on Chinese suppliers.
As a result of these changes, US buyers are now turning to other countries for their goods. Mexico, Europe, and Southeast Asia have all seen an increase in their share of the US import market. In particular, Mexico has become a major competitor to China as a source of electronics and machinery.
The decline in Chinese imports is good news for US businesses and consumers. It means that they have more options to choose from and that they are not as reliant on a single country for their goods. It also means that the US trade deficit with China is shrinking.
However, the decline in Chinese imports is bad news for China. It means that the country is losing out on export opportunities and that its economy is slowing down. It also means that China is losing its influence over the global economy.
China’s share of U.S. imports of apparel declined quickly after the Trump administration included the category in a round of tariffs in 2019. Sourcing has continued to shift to other Asian countries, including Vietnam, Bangladesh and Indonesia. And growing U.S. scrutiny of labor practices in the cotton-producing Chinese region of Xinjiang, as well as rising wages for Chinese workers, impacted imports significantly
The trade war between the United States and China is likely to continue for some time. It is unclear how long it will take for the two countries to reach a resolution. But in the meantime, the decline in Chinese imports is a sign that the world is changing.
