The portion of Chinese goods heading to the United States has dropped sharply in recent years. Back in 2017, the US made up about 20% of China’s total exports. Today, that number has fallen to just 14%. This shift shows how trade patterns are changing in a world shaped by tariffs, new supply chains, and rising competition.
So where is all that trade going instead? Countries like Vietnam, Taiwan, Mexico, India, and South Korea have stepped in to fill the gap. These nations are now supplying more products to the US market, gaining market share that China once held.
So where is all that trade going instead? Countries like Vietnam, Taiwan, Mexico, India, and South Korea have stepped in to fill the gap. These nations are now supplying more products to the US market, gaining market share that China once held.
Interestingly, some of the products that the US now imports from these countries may still have roots in China. Studies suggest that about 2% of the market share gained by these countries comes from goods that were originally imported from China, then processed or assembled before being shipped to the US. In short, Chinese goods are still making their way to the US — just through a longer route.
It’s also worth noting that the vast majority of Chinese exports — over 80% — are now going to other regions besides the United States. China’s export economy has become more diversified, relying less on one single customer.
Lastly, there’s been a lot of talk about the “de minimis” rule, which allows goods worth less than $800 to be shipped directly to US consumers without heavy customs checks. While this route adds about $20 billion worth of small shipments from China to the US, it’s still a tiny piece compared to the roughly $500 billion total trade figure between the two countries.
Inputs from Apollo
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