The economy of China is an export-based economy. The US and many developed countries in Europe are consumption-driven economies. China produces more than it can consume and looks to overseas markets to export its surplus production. The US for example is a major importer of goods from China. The country chronically runs a trade imbalance with China. The US exports to China is less than half of China’s exports to the US since 2015 as shown in the chart below. It remains to be seen how the 2025 data turns out due to tariffs imposed on imports.
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Source: What challenges does the world economy face in 2026?, DW
In 2024, China exported $526 billion worth of goods to the US. American exports to China amounted to just $144 billion.
