Recently, China released its foreign trade import and export data for the first 11 months, which showed that China's exports to the United States fell by 138%。As we all know, the United States has been one of China's largest partners over the past few decades. What is the reason behind this change?To answer this question, we need to start with the history of China's exports to the United States, the changes in U.S. exports to China, and the role of other countries. Below we will go into more detail about these issues.
Since China's accession to the World Organization (WTO), China has become one of the largest partners of the United States. For many years, China's exports have been known for their low cost and high quality, satisfying a large amount of consumer demand in the U.S. market. China's exports to the U.S. involve a wide range of sectors, from electronics to textiles, machinery and equipment to household goods. As a result, the growth of Chinese exports to the United States once made China the largest importer of the United States.
However, this changed in 2018. At that time, the United States' surplus with China continued to increase, coupled with the intensification of bilateral disputes, the United States began to take restrictive measures to impose restrictions and tariffs on China's exports. As a result, the bilateral amount between China and the United States began to decline.
In 2020, the new crown epidemic broke out, and the United States urgently needed a large number of medical supplies. In order to meet the demand, the United States began to import goods from China in large quantities, making China once again the largest partner of the United States. However, this state of affairs did not last long. The United States believes that over-reliance on Chinese imports is not conducive to the development of the economy, so it has begun to take the initiative to reduce the amount of goods imported from China.
As the largest export partner to the United States, China's position has been impacted. According to the latest data, in the first 11 months of this year, China's exports to the United States fell by 138%。This means that China is gradually falling from the first largest importer to the third largest importer of the United States.
So, after China fell to the third largest importer of the United States, which two countries rose to become the top two importers of the United States?The answer is Mexico and Canada.
According to statistics, in the first 11 months of this year, the United States imported $195 billion from Mexico and $176 billion from Canada. These two countries each became the first place in the United States.
1. The second largest importer. So why were Mexico and Canada able to overtake China as the top two importers to the United States?
First of all, Mexico and Canada both share a border with the United States, and their geographical locations have made them the first choice for the United States to promote "entrepots**". In other words, Mexico and Canada became "transit points" for imports from China, through which the U.S. could do so without the restrictions and tariffs involved in importing goods directly from China.
Second, the United States signed the USMCA with Mexico and Canada, removing ** restrictions and tariffs. This has led to a continuous increase in the United States and these two countries. Mexico and Canada took advantage of this opportunity to quickly rise to become one of the main partners of the United States.
China's exports to the U.S. fell 138%, and the top two importers to the United States are Mexico and Canada. This change is the result of a combination of factors. First, the decline in U.S. demand for Chinese exports, and secondly, Mexico and Canada have become preferred places for the U.S. to promote "entrepots", coupled with the signing of the USMCA, these factors have led to a change in China's position in the United States.
However, this is only a temporary change in the pattern, and China's power and influence are still very important in the global economy. As the world's largest manufacturing base and consumer market, China still has great potential. In the future, the best relations between China and the United States will gradually move towards balance and stability with the joint efforts of both sides.
In short, there are many factors behind the decline in China's exports to the United States. The rise of Mexico and Canada is a change in the global landscape, and the signing of the USMCA provides an opportunity for cooperation between the two sides. With the changes in the global economy, finding the right development direction and partners in the world is the key to the stable development of China's foreign trade. As one of the world's largest countries, China still has huge development potential and opportunities. By deepening reform, expanding opening-up, and improving the level of facilitation, China will continue to play an important role on the global stage.