US trade exposure to China will remain high

Significance

In January-November, imports of Chinese goods dropped more than 20% year-on-year. China’s share of total US imports plunged to 13.9% from 16.7% in the same period in 2022, while Mexico’s share rose from 14.9% to 15.5%; Canada’s share almost matched China’s.

Impacts

• Chinese businesses will devise new strategies to conquer the US market.
• US firms will continue diversifying suppliers, reducing dependency on China and expanding ties with Mexico, South-east Asia and India.
• Chinese firms will supply intermediate products and equipment to aforementioned third countries and expand local production facilities.