Despite the covid-19 upsurge in 2020, countries like China saw the export trade surplus rise by 27% with the world that year, amounting to $535 billion. China is the world’s largest exporter, and no one has surmounted the country’s export dominance in terms of volume and money.
US-China Import Export Statistics
China is the United States’ 3rd largest international goods trade partner. The US trade deficit with China was $345.2 billion in 2019, falling to $310.8 billion at the end of the last quarter of 2020. It was the lowest in a decade. Up till April 2021, the trade deficit has been approximately $104 billion this year.
US-China Import Export Statistical Details
TheUS import-export data shows the monthly division charts of The US trade deficit with China for 2020. It is displayed below:
What Necessitates Global Trade In Any Situation?
The trade deficit should not be the parameter to judge a country’s economic situation. It is neither wise nor possible for a country to be entirely self-dependent in producing all the essential and non-essential commodities. Many products can be imported at a much lower rate than can be produced domestically. Thus, global trade flourishes, as evidenced by US import-export data.
Why Do Countries Incur A Trade Deficit?
The US cannot compete with China in terms of low production costs. The primary reason is the low cost of labour and comparatively lower standards of living in China. The low cost of labour is due to its large population.
If the US starts producing everything at home, then after levying all the necessary taxes and tariffs, the selling price of certain commodities becomes too high. The common public of the USA might not be able to afford it.
Essential imports like electronic goods, sporting commodities, toys and games, and apparel can be produced in China at a much lower cost. The US imports data shows that these are the main imports.
The US, however, uses Chinese labour to assemble the spare parts of certain commodities to reduce manufacturing costs since Chinese labour is cheaper than labour at home.
Why Did US Trade Deficit Continue After The Pandemic?
Economic tension between the US and China brewed after the pandemic, as the coronavirus had led to the global economic shutdown. Despite the slow economic upturn and tumultuous trade relations, China and the US couldn’t cut ties.
Thus, as an aftermath of the shutdown and low business due to the pandemic, American demand for cheaper goods rose, and the demand for homegrown products decreased subsequently.
Moreover, China is one of the leading holders of the treasury of The United States. It uses that to get low exchange rates with the United States. Both the countries benefit mutually from this arrangement.
While China gets a market to sell, US consumers get low-priced products, and the US government benefits from the capital investment made in their country.
Where Can You Find Reliable Trade Deficit Intel?
You can quickly get all the US-China trade and shipment information with platforms like Trademo. Glatfelter Falkenhagen Gmbh is another export agency based out of Germany which is registered with Trademo. Knowing this data can help you scale or expand your import-export business.
Glatfelter Falkenhagen Gmbh has delivered 20 shipments so far in the ports of South Carolina and Virginia. If you want trade services for any such location, you can check out its intel online. You can also check out any country’s imports data before proceeding into the business.