US Imports of Chinese Products Down 24% Year-to-Date

Amid escalating tensions between the U.S. and China, imports of Chinese products into the United States have dropped by more than 20% compared to a year ago.

On the 6th (local time), The Washington Post (WP), citing the U.S. Census Bureau, reported that imports of Chinese goods from the beginning of this year through May decreased by 24% compared to the same period last year.

According to Oxford Economics, a UK consulting firm, out of every 6 dollars Americans spend on imports, 1 dollar is spent on Chinese products. Before the outbreak of COVID-19, it was 1 dollar out of every 4 dollars, indicating an even greater decline.

Companies are also restructuring their supply chains to minimize risks caused by geopolitical tensions between the U.S. and China. HP currently has 12,000 parts suppliers and key R&D centers in China. However, it is increasing production of business PCs in Mexico and consumer models in Thailand, and plans to expand its printer factory in Oregon, U.S.

Tool manufacturer Stanley Black & Decker closed its Chinese factory three years ago and now manufactures products for the North American market at its factory in Mexico. Danish company Lego is also reducing the proportion of Chinese-made products sold in the U.S. Between 2015 and 2017, 18% of Lego products sold in the U.S. were made in China, but last year this proportion dropped to 3%.

China, which has served as the "world's factory" since joining the global trade system over 20 years ago, is now facing its most difficult challenge.

Adam Slater, Chief Economist at Oxford Economics, said, "The hostile and confrontational stance of both governments has begun to influence decision-making in the private sector," and predicted, "This U.S. 'decoupling' will continue."

As manufacturers prefer regional supply chains over global ones, Mexico became the U.S.'s largest trading partner earlier this year. Along with Mexico, countries like Vietnam and Thailand are gradually taking over China's role.

By industry, the electronics sector is leading this change. According to Standard & Poor's (S&P) Market Intelligence, the share of China in U.S. PC imports decreased from 61% in 2016 to 45% last year. Printer imports also fell from 48% to 23% during the same period.

This content was produced with the assistance of AI translation services.