Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that, according to data released by the US Department of Commerce, last year, China lost its position as the largest trading partner of the U.S. It was replaced by the European Union. In 2022, U.S. imports rose sharply, and the foreign trade deficit reached a record high. According to the U.S. Department of Commerce, the U.S. imported $537 billion in products from China in 2022, lower than the U.S. imports of $553 billion from the European Union. However, overall U.S. imports from China increased from the previous year’s $505 billion in 2021. China’s loss of its status as the largest trading nation of the United States has been blamed largely on Covid-19, as well as the diversification of U.S. supply sources. Particularly supplies from other Asian countries have increased. In the meantime, data shows that the trade dependence between China and the United States remains high. In 2022, the total import and export volume of the two countries broke the historic record again after three years, reaching $690.5 billion. During the same period, the U.S. deficit with China expanded by eight percent to $382.9 billion, the second highest in history after 2018. In 2022, U.S. businesses and consumers had strong demand for foreign-made goods and services, and international trade was recovering from the pandemic. China has not benefited significantly from this recovery.
Source: NetEase, February 9, 2023