CONVERA
New politically charged trading policies have had a big impact on trade in recent years , as leading Western nations look to diversify from an over-reliance on China . Near-shoring trading has seen India , Vietnam , Mexico and Thailand become key beneficiaries of new trade opportunities as global firms move production away from China .
The US Inflation Reduction Act and the CHIPS and Science Act have both impacted the ability of China to undertake trade with the US and accept foreign direct investment . Chipmaker Intel is one major producer that is considering moving production out of China to comply with new US regulations .
Today , the difference between Chinese imports into the US compared to five years ago is stark . In the first six months of 2018 , Chinese imports into the US sat at US $ 249bn , but in the same period in 2023 , Chinese imports accounted for only US $ 203bn – a drop of 18.5 %.
Decoupling from China , the US has turned to Mexico as its number one importer . Its imports have grown from US $ 168bn in the first six months of 2018 to US $ 236bn in the first six months of 2023 – an increase of more than 40 %, underpinning
Mexico overtakes China as US ’ # 1 source market for goods
Monthly US imports , USD mln , 6-month rolling total
Sources : US Census Bureau , Convera – August 2023
48 October 2023