BEIJING: The sharp decline in the value of goods imported by the United States from China — by 25 percent in the first half of this year — is not only due to a drop in consumer spending, but is also a result of “indirect trade” between the two countries, suggesting that their economic links are “enduring” even amid tensions, analysts said.
US goods imports from China were valued at $203 billion during the first six months of 2023, a decline from $271 billion in the same period last year, while two-way goods trade fell by nearly 20 percent, according to data released by the US Commerce Department on Tuesday.
Meanwhile, the latest Chinese Customs data showed that China exported 1.95 trillion yuan ($270 billion) of goods to the US in the first seven months, down 13 percent year-on-year. Overall China-US trade declined 9.6 percent year-on-year to 2.46 trillion yuan during the period. “I think the decline is mainly due to a slowdown in US household purchases of the various goods produced in China,” said Gary Hufbauer, a senior fellow and trade expert at the Peterson Institute for International Economics in Washington.
The top US imports from China so far this year included computers, electronic products, electrical equipment, appliances, components, machinery and chemicals, according to the International Trade Administration.
Hufbauer said the impact of the massive tariffs, imposed on roughly two-thirds of imported Chinese goods during the administration of former US president Donald Trump, was “pretty well” reflected in US imports from China by 2022. Further declines in 2023 mainly reflect changes in household purchasing patterns.
Overall US imports of goods slumped by 1.2 percent to $253.3 billion in June, the lowest level since October 2021, according to official statistics. –The Daily Mail-China Daily news exchange item
