The US just imported its smallest share of Chinese goods in 17 years — and the big winners are Mexico and Vietnam

[Viet]

Mexico is a key beneficiary of the shift in US supply chains away from China. Ricardo Castelan/Eyepix Group/Future Publishing/Getty Images


The US has been importing a smaller proportion of goods from China — indicating a shift in global supply chains as companies diversify their manufacturing bases.

Goods imported from China into the US made up 14.6% of all shipments in the 12 months through July, according to Bloomberg's analysisof data from the US Census Department, published on Wednesday.

The country's share in the imports pie is down from a peak of 21.8% in the 12 months through March 2018, before then-US President Donald Trump intensified a trade war against China. It's also the lowest percentage of US imports from China since 2006, per Bloomberg's records.

The data followed years of supply chain disruptions — including heightened Washington-Beijing geopolitical tensions, draconian COVID-19 pandemic lockdowns in China, and rising wages in China that make manufacturing costlier.

Now, Mexico and Vietnam appear to be taking away some of China's share.

Mexico's share of goods imported into the US hit a record high of 15% in the 12 months through July, while Vietnam's share was 3.7%, just off a record high reached in 2022, per Bloomberg.

In fact, Mexico edged out Canada as the US' top trading partner at the start of 2023.

At almost 16% share of the total trade, Mexico remained the US' top trading partner in July. The total trade between the two countries stood at nearly $462 billion, according to data from the Census Bureau. Canada and China were the US' second and third trading partners, respectively.

"Mexico's gains mirror its rise in manufacturing, a key component of goods moving between it and the US," Luis Torres, a senior business economist at the Federal Reserve Bank of Dallas, wrote in a July 11 post.

Mexico also has a geographical advantage as an alternative to China in the trend for manufacturers to "nearshore" their operations to the US, a large consumer market, Torres added.

"Nearshoring" refers to sourcing or producing goods from a nearby country.

Even Chinese manufacturers have been moving to Mexico to serve their US customers amid tensions between Washington and Beijing. They include TV set-maker Hisense and car parts makers like Minth Group and Binzhou Bohai Piston Co.

Meanwhile, other up-and-coming manufacturing hubs like Vietnam have also been enticing manufacturers looking to shift some output away from China.

Vietnam's key manufacturing strength is in apparel, footwear, electronics, and electrical appliances.

The Census Bureau did not immediately respond to a request for comment from Insider sent outside regular business hours.

The US imported the smallest share of Chinese goods in 17 years

US' share of imported goods from China was 14.6% in the 12 months through July 2023, down from a 21.8% peak prior to an intensifying trade war.

www.businessinsider.com

 

[huanghong]

I think it is a good thing for China. After all, according to this year's data, while reducing exports to the United States, China has maintained its share of the world's total exports, which shows that China has opened up new customers.
It is dangerous to place export hopes on a malicious client, and it is wise to try to get rid of him.
In particular, the demand from this customer itself is also declining. For example, Vietnam seems to have gained a higher market share, but its exports to the United States actually dropped by 20%.

Trade war winner Vietnam sees exports drop for sixth month

Vietnam has seen exports plunging amid a faltering recovery in China's economy and a slowdown in goods demand across the world.

economictimes.indiatimes.com

 

[Viet]

I think it is a good thing for China. After all, according to this year's data, while reducing exports to the United States, China has maintained its share of the world's total exports, which shows that China has opened up new customers.
It is dangerous to place export hopes on a malicious client, and it is wise to try to get rid of him.
In particular, the demand from this customer itself is also declining. For example, Vietnam seems to have gained a higher market share, but its exports to the United States actually dropped by 20%.

Trade war winner Vietnam sees exports drop for sixth month

Vietnam has seen exports plunging amid a faltering recovery in China's economy and a slowdown in goods demand across the world.

economictimes.indiatimes.com

Decoupling in progress
Declining in exports is a temporary trend however China exports to US will decrease to minimum my friend. It’s best Ccp moves all export facilities to Vietnam. China youth are too fat too lazy they don’t want to work in dirty factories.

 

[huanghong]

Decoupling in progress
Declining in exports is a temporary trend however China exports to US will decrease to minimum my friend. It’s best Ccp moves all export facilities to Vietnam. China youth are too fat too lazy they don’t want to work in dirty factories.

Why stay in a dirty factory when there are better jobs?
Yes, decoupling is good for everyone.

 

[Nan Yang]

Mexico is a key beneficiary of the shift in US supply chains away from China. Ricardo Castelan/Eyepix Group/Future Publishing/Getty Images


The US has been importing a smaller proportion of goods from China — indicating a shift in global supply chains as companies diversify their manufacturing bases.

Goods imported from China into the US made up 14.6% of all shipments in the 12 months through July, according to Bloomberg's analysisof data from the US Census Department, published on Wednesday.

The country's share in the imports pie is down from a peak of 21.8% in the 12 months through March 2018, before then-US President Donald Trump intensified a trade war against China. It's also the lowest percentage of US imports from China since 2006, per Bloomberg's records.

The data followed years of supply chain disruptions — including heightened Washington-Beijing geopolitical tensions, draconian COVID-19 pandemic lockdowns in China, and rising wages in China that make manufacturing costlier.

Now, Mexico and Vietnam appear to be taking away some of China's share.

Mexico's share of goods imported into the US hit a record high of 15% in the 12 months through July, while Vietnam's share was 3.7%, just off a record high reached in 2022, per Bloomberg.

In fact, Mexico edged out Canada as the US' top trading partner at the start of 2023.

At almost 16% share of the total trade, Mexico remained the US' top trading partner in July. The total trade between the two countries stood at nearly $462 billion, according to data from the Census Bureau. Canada and China were the US' second and third trading partners, respectively.

"Mexico's gains mirror its rise in manufacturing, a key component of goods moving between it and the US," Luis Torres, a senior business economist at the Federal Reserve Bank of Dallas, wrote in a July 11 post.

Mexico also has a geographical advantage as an alternative to China in the trend for manufacturers to "nearshore" their operations to the US, a large consumer market, Torres added.

"Nearshoring" refers to sourcing or producing goods from a nearby country.

Even Chinese manufacturers have been moving to Mexico to serve their US customers amid tensions between Washington and Beijing. They include TV set-maker Hisense and car parts makers like Minth Group and Binzhou Bohai Piston Co.

Meanwhile, other up-and-coming manufacturing hubs like Vietnam have also been enticing manufacturers looking to shift some output away from China.

Vietnam's key manufacturing strength is in apparel, footwear, electronics, and electrical appliances.

The Census Bureau did not immediately respond to a request for comment from Insider sent outside regular business hours.

The US imported the smallest share of Chinese goods in 17 years

US' share of imported goods from China was 14.6% in the 12 months through July 2023, down from a 21.8% peak prior to an intensifying trade war.

www.businessinsider.com

Have you check Vietnam and Mexico imports from China ?

 

[Viet]

Have you check Vietnam and Mexico imports from China ?

The formula is decoupling China from US, not China from Vietnam, or China from Mexico.

 

[silverox]

The United States has given every country a position, and the United States has given China a position as a supplier of low-tech consumer goods

China will never allow others to control their own destiny

 

[Han Patriot]

Decoupling in progress
Declining in exports is a temporary trend however China exports to US will decrease to minimum my friend. It’s best Ccp moves all export facilities to Vietnam. China youth are too fat too lazy they don’t want to work in dirty factories.

I think the strategy is to use Vietnam and Mexico as middle countries to export to US. Components and higher level input will be manufactured in China and assembled in both countries. But that doesn't mean manufacturing ceases in China, it will still need to cater to Chinese domestic market and other non restricted markets. You must not underestimate Chinese shift to automation and robotics. Fat lazy Chinese will be replaced by robots and I have seen it happening first hand in one factory, reduced manpower by almost 70%. The future is industrial 4.0. China is doing the cabbage to robots like how we did a cabbage to phones, electric cars and electronics m

 

[MH.Yang]

The formula is decoupling China from US, not China from Vietnam, or China from Mexico.

Check the growth rate of Chinese exports to Vietnam and Mexico and you'll be pleasantly surprised.

In fact, China didn't lose out, the Mexicans and Vietnamese earned brokerage fees, and only Americans bore the additional inflation.

 

[dbc]

Check the growth rate of Chinese exports to Vietnam and Mexico and you'll be pleasantly surprised.

In fact, China didn't lose out, the Mexicans and Vietnamese earned brokerage fees, and only Americans bore the additional inflation.

View attachment 951838

Yes Chinese factories are shutting down and moving equipment to Vietnam.

 

[Nan Yang]

The formula is decoupling China from US, not China from Vietnam, or China from Mexico.

It is circumventing the decoupling.

 

[jhungary]

Check the growth rate of Chinese exports to Vietnam and Mexico and you'll be pleasantly surprised.

In fact, China didn't lose out, the Mexicans and Vietnamese earned brokerage fees, and only Americans bore the additional inflation.

View attachment 951838

But if you look at Mexican Export

Mexico Exports - August 2023 Data - 1980-2022 Historical - September Forecast

Exports from Mexico rose by 2.9% year-on-year to USD 47.55 billion in July 2023, driven by higher shipments of non-oil products (+5.7%), notably manufactured automotive products (+35.7%), offsetting declines in mining (-25.9%) and agricultural goods (-6%). Conversely, oil shipments slumped by...

tradingeconomics.com

As mentioned before in a different thread, Mexico or Vietnam did not just import from China and then relabel them to export to the US

This is an age-old concept of re-export, Mexico or Vietnam buy raw material from China, then using that raw material to produce something and export them. I believe the example I used on the other thread is clothing, I can buy a yard of fabric from China for $3 and make a dress with that $3 piece of fabric and sell it for $99, in the old days, China would have make that dress themselves, and you lessen your dependence on China by doing so.

 

[Menthol]

The least China relying on USA, the better.

USA policy toward China is unstable and tend to destructive.

The more China away from USA, the least USA has control over China, and the least China economy will be troubled by USA.

 

[Stranagor]

https://www.google.com/amp/s/amp.cnn.com/cnn/2023/09/07/economy/china-trade-august-decline-hnk-intl/index.html

China’s exports and imports fall again in August as demand slumps​

 

[Menthol]

https://www.google.com/amp/s/amp.cnn.com/cnn/2023/09/07/economy/china-trade-august-decline-hnk-intl/index.html

China’s exports and imports fall again in August as demand slumps​

USA and EU economies are in trouble.

Basically, we entered a global recession.

We read so many economic analyses by so many experts, but you don't read it on the news because USA wants to appear stronger than it should be to bring public confidence.

Let be honest, by using our own analysis, we can see many contradictions between what should happen and what USA government and media are reporting.

BRICS currency is a way to prevent the economic crisis spilling into third world countries.

That's why its supported by so many countries worldwide, despite the Western media doesn't say about it but instead twist it as some kind of political maneuver by Russia and China.