Chinese Exports to USA Collapse

Between May and August 2023, American companies reduced their imports of Chinese goods and services by about a quarter. More precisely, compared with the same period of 2022, exports from China to the USA fell by 24 percent. According to The Washington Post, “despite attempts by Washington and Beijing to normalize bilateral relations, tensions are still very high.”

The USA has sharply criticized China for “lack of condemnation of the Russian military operation in Ukraine.” For its part, China continues to protest against military-technical cooperation of the US with Taiwan. The Chinese Defense Ministry spokesman called Taiwan’s new $345 million arms package a “serious threat to peace and stability in the region” and once again accused Washington of “brutal interference in China’s internal affairs.”

In this context, companies, including such giants as Hewlett Packard and Lego, are trying to reduce their dependence on Chinese suppliers to a minimum and have begun the process of reconstructing supply chains, writes The Washington Post. In particular, the share of Chinese personal computers in total US imports decreased from 61% (2016) to 45% in 2022.

In other words, American companies do not want to be “caught in the grip of superpower rivalry.” As a result, Mexico became the USA’s largest trading partner in May 2023, followed by Vietnam and Thailand.

According to The Washington Post, China as the “center of world production” is currently facing one of the hardest challenges over the past 20 years. Japan has also significantly reduced its imports from China. Instead, Europe, just as before, continues to receive raw materials from China. As for Italy, by 2023 it is expecting a 50% jump in imports of Chinese tomato paste that costs half of its Italian counterpart. Coldiretti and Filiera Italia sound the alarm: Already in 2023, China, with a production volume of 7.3 billion kg, will overtake Italy in the world ranking of industrial tomatoes producers.