DHL Report: Decoupling of US-China Trade
According to DHL's Global Connectedness Index, despite globalization still having resilience in a broader sense after nearly five years of public economic conflict, the US-China trade relationship is beginning to show a "general pattern" of decoupling. According to Bloomberg, US-China trade flow reached a historical record of $690.6 billion in 2022, larger than any other country without a common border. However, deep data analysis reveals that both the US and China have significantly reduced each other's import share, indicating an economic decoupling.
In 2022, China's share of imports into the United States decreased from 21.6% in 2017 to 16.6%, while exports from the United States to China as a percentage of total exports fell from 8.4% in 2017 to 7.3%. DHL's research report cites analysis by the Peterson Institute for International Economics stating that tariffs initiated by former President Trump in 2018 and maintained by President Biden are the main reason for declining US-China trade flows.
By mid-2022, imports of Chinese goods subject to the highest tariffs imposed by the United States had fallen by 22% compared with before the start of the trade war in 2018 but increased by50% during this period when not affected by U.S.tariffs on Chinese imports.
The report analyzed various data including foreign direct investment trends and scientific research cooperation and found that almost all cross-border flows involving China have been decreasing since 2016.However,the report also found little evidence suggesting meaningful decoupling between America’s allies and those countries trading with or allied with China regarding commodity trades
In 2022, China's share of imports into the United States decreased from 21.6% in 2017 to 16.6%, while exports from the United States to China as a percentage of total exports fell from 8.4% in 2017 to 7.3%. DHL's research report cites analysis by the Peterson Institute for International Economics stating that tariffs initiated by former President Trump in 2018 and maintained by President Biden are the main reason for declining US-China trade flows.
By mid-2022, imports of Chinese goods subject to the highest tariffs imposed by the United States had fallen by 22% compared with before the start of the trade war in 2018 but increased by50% during this period when not affected by U.S.tariffs on Chinese imports.
The report analyzed various data including foreign direct investment trends and scientific research cooperation and found that almost all cross-border flows involving China have been decreasing since 2016.However,the report also found little evidence suggesting meaningful decoupling between America’s allies and those countries trading with or allied with China regarding commodity trades
