US Trade in Goods with China

Trade Wars || US vs China — A Global Perspective

In 2019 US imports from China dropped more than 12.5 percent to US$456 billion (Source: United States’ Census Bureau ) while China’s imports from the US dropped to US$122.7 billion per the data released by the General Administration of Customs of People’s Republic of China.

For the year 2019 the total U.S. trade in goods with the world was US$4,145 billion — down 1.48 percent compared to 2018, which was US$4,207 billion. Relative to year 2018, the US’ exports dropped almost 1.2 percent to US$1,652 while the imports were down 1.48 percent to US$2,493 billion.

The overall trade deficit was down in 2019. Global trade in goods deficit was $841.2 billion, down 1 percent compared to 2018 when the deficit was $874.8 billion.

The top five trading partner countries for the U.S. in 2019, by value, were:

• Mexico
• Canada
• China
• Japan
• Germany

As a result of intense trade wars between the two largest economies in the world, China slipped down to the third position among the United States’ top trade partners in 2019—In the previous years, it consistently ranked the top US trade partner.

US-China Trade in Perspective—Impact of The Trade War

By value, the top five U.S. categories of goods exported to China in 2019 were:

• Civilian aircraft & parts
• Computer chips
• Soybeans
• Vehicles
• Machinery and parts for semiconductor manufacturing

These categories collectively accounted for more than 35 percent of total exports to China.

By value, the top five categories of goods imported from China in 2019 were:

• Cell phones and related equipment
• Computers
• Toys, children’s bicycles, and games
• Television sets and computer
• Motor vehicle parts

Import from China in these categories collectively accounted for more than 30 percent of total imports from China.

Trade War’s Effect on Major Categories of Goods

The salvos of tariffs fired by both the US and China upon each other’s economy had some predictable effects on the imports and exports of both nations. The procurements and purchases of some certain type of categories, like computer chips and toys, were accelerated while other items recorded a decline. The following list summarizes the major categories that got impacted by the imposed tariffs in 2019.

U.S. Export to China:

• Civilian Aircraft and Parts: Declined by more than 38 percent compared to US$10 billion in 2018.
• Computer Chips: Rose more than 36 percent compared to US$7.5 billion in 2108.
• Soybeans: Increased 126 percent compared to US$7 billion in 2108.
• Motor Vehicles & Lorries: Rose 6.5 percent compared to US$6.9 billion in 2108.
• Machinery & Parts for Semiconductor Manufacturing: Fell 7.6 percent compared to US$3.2 billion in 2108.

U.S. Imports from China:

• Cell Phones and Related Equipment: Were down18 percent compared to US$53.5 billion in 2108.
• Computers: Fell 12.77 percent compared to US$41.7 billion in 2108.
• Toys, Bicycles, and Games: Were up 3.8 percent compared to US$11.6 billion in 2108.
• TVs and Computer Monitors: Declined 4.5 percent compared to US$10.67 billion in 2108.
• Motor Vehicle Parts: Fell 15.5 percent compared to US$8.4 billion in 2108.

US vs China—Trade in Perspective

Trade Wars have negatively impacted Chinese economy. But, unlike the US, businesses and industries there are making adjustments to the new reality of the trade. MIC2025—one of the major causes of the trade frictions between the US and China, is already changing the landscape of Chinese economy.

Despite a slowing global economy due to trade wars, the data compiled from various international sources indicate a rather resilient sate of Chinese economy. While the General Administration of Customs of China in its 2019 year end release confirmed the slowdown of economy, the overall global trade data was pointing to the success of the adjustments policies that are being implemented by the Chinese governments and the business as a whole.Measuring in Yuan, China’s exports expanded by more than 5 per cent in 2019 while imports increased by almost 1.6 per cent.

Data for the month of December of 2019 was showing a sharp uptick; in US dollar terms, China’s exports grew by 7.6 per cent in December, which was up from minus 1.3 per cent in November. The Imports increased by more than 16 per cent in December, way up from 0.3 per cent in November.

In yuan terms — comparing the same period in 2018, China’s exports rose 9 per cent in December while imports surged almost 18 per cent.

These data point to strong demand in Chinese internal economy. Both the exports and imports figures — whether measured in Yuan terms or in US dollar terms, were well above analysts’ expectations.

U.S. and China Global Trade Summary for 2019:

• The United States’ total exports were US$1,652 billions.
• The United States’ total imports were US$2,493 billions.
• China’s total exports were US$2,499 billions.
• China’s total imports were US$2,077 billions.

The global aggregate trade data suggest that the fundamentals of the Chinese economy are strong and the adjustments that they made — in particular the trade re-balancing and redirections towards the economies along the Belt and Road Initiative have already started paying the dividend. We are looking at a sound economy with a clear vision and direction — not an inflated and artificially pumped-up economy. These indicators are a good omen for the global economy.

US—China Historical Trade

Since 2012, the U.S. trade deficit with China had been increasing year-over-year. Back in 2012, it was US$315 billion. It rose to $367 billion in 2015. In 2018, the U.S. trade deficit with China had risen to $419 billion.

The major factor responsible for this very significant and ever increasing trade deficit is the US manufacturing and economy’s reliance on china for most of its needs for essential parts, material, and components — beside sourcing most of its consumer consumption goods. Consequently, U.S. imports goods and services from China in the range of $450 to $540 billion while exports goods and services worth only $100 to $120 billion.

The major categories of imports from China include items like computers and accessories, communication and transmission equipments, electronics, chemicals, cell phones, and apparel and footwear.

China’s major imports from America has been mostly commercial aircraft, soybeans, and autos.

The Tables below presents the ‘US Trade in Goods with China’ historical data since the Year 1985.

U.S.Trade in Goods with China

{ Source: US Census }

[NOTE: All figures are in millions of U.S. dollars on a nominal basis, not seasonally adjusted unless otherwise specified. Details may not equal totals due to rounding. Table reflects only those months for which there was trade.]

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

1986

1985

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