Declining Chinese imports to US: What it means for you

Over the past 5 years, America has sought to reduce its reliance on Chinese imports for a variety of reasons. US policies and regulations aimed at reducing Chinese imports have proven effective. In tandem with China’s ongoing recovery from COVID related supply issues, the result is a sharp decline in direct Chinese imports to America. In fact, 2023’s share of US imports from China is the lowest it’s been since 2006 at just 14.6%.

This number doesn’t tell the whole story. As China’s direct imports to America decline, its imports to other countries have increased. Important US trading partners like Mexico and Vietnam have both seen their share of Chinese imports increase significantly. American imports of Mexican and Vietnamese goods have increased proportionally over the past five years to fill the gaps left by China.

The result is a more complex international trade network. Increased export capacity in Mexico is somewhat contingent on increased import trade with China. China’s economic influence on America has shifted from direct to indirect, but it matters as much as ever.

Canaan Group remains at the forefront, actively fostering partnerships globally including Mexico and Vietnam. We stand ready to assist companies in adapting their supply chains to navigate these evolving dynamics, ensuring a seamless transition and continued business success.