DECOUPLING: After 17 Years, China Set To Lose ‘Top Spot’ As No. 1 Exporter To US; China-US Trade War Benefits Others.

China’s share of total US imports has plummeted to 13.9%, marking the lowest percentage since 2004. This decline is substantial compared to its peak of over 21% around 2017. US exports to China have shown minimal growth throughout the year.

Stepping into the void left by China, Mexico is positioned to become the leading exporter to the US for the entire year, a status it hasn’t held since 2000. US imports from Mexico are set to record a high in 2023, constituting over 15% of the total for the first 11 months of the year.

The European Union has also experienced a surge in exports to the US, reaching an all-time high during the same period.

This shift in US trade patterns is particularly evident in the diversification of sources for critical products, such as consumer electronics, which have traditionally relied heavily on China.

Notably, smartphone imports from China have seen a 10% decrease, while imports from India have surged fivefold. Similarly, laptop imports from China dropped by approximately 30%, but those from Vietnam quadrupled.

Chairman Xi has no one to blame but his own belligerence.