A Look at US Trade with China

The latest trade data shows that US exports to fell slightly in April over March. However imports were up.Imports have picked up since reaching lows in February. The trade deficit with China continues to be still high since the US imports more than four times what it exports to China. US exports to China is down 15.6% year-over-year thru April this year.Though China’s imports are up thru May, it has not turned into higher export opportunities for US companies.

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US Trade with China

Data Source: Census.gov

From a historical perspective, both imports from China and exports to China from have to rise in sync with each other. If the US exports continues to be flat-to-down and imports from China improves then the trade deficit will grow more and it will also imply that the Chinese are importing goods from other countries or sourcing goods from domestic producers. Given the current state of the US economy and the 9.5% official unemployment rate reached today, the US will import less from China.This may lead to further social unrest in China unless China is able to stimulate domestic consumption.

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