Why the U.S.-China trade deficit is so huge: Here’s all the stuff America imports

Market Watch ^ | June 25th, 2019 | By Jeffry Bartash

[Mariner]

The simmering trade war between the U.S. and China has led both sides to raise tariffs, but the lopsided trade relationship between the two countries means the impact will fall heaviest on Chinese producers and American consumers and farmers.

The U.S. imported a record $539.5 billion in goods from China in 2018. The U.S. is a net importer from China in most market segments such as consumer electronics, apparel, furniture and industrial supplies. The one major exception: agriculture.

By contrast, the U.S. shipped a much smaller $120.3 billion in goods to China last year, Census trade figures showed.

Exports to China fell from almost $130 billion in 2017 as buyers shunned American soy and corn. U.S. farm exports to China fell to $5.9 billion in 2018 from $15.9 billion in the prior year.

[Mariner]

Excellent charts at the link.

Of note: We import more in Chinese electronics than they import from us of ALL goods.

And any analysis that says this will raise prices for US consumers erroneously assumes we'll keep buying their cheap sh!t when it costs more than US goods. Or goods available from anywhere else in the world.

We won't.

[Zhang Fei]

We import more in Chinese electronics than they import from us of ALL goods.

And by Chinese electronics, they mean iPhones and mostly non-Chinese smartphones. These can obviously be rerouted to other countries. Slap on the 25% tariffs, and they will be.

[Mariner]

“These can obviously be rerouted to other countries. Slap on the 25% tariffs, and they will be.”

Most fifth graders can figure out if a smartphone was made in China. The information is on the interwebs.

The tariff would remain whether shipped from Viet Nam or China.

[Zhang Fei]

[Most fifth graders can figure out if a smartphone was made in China. The information is on the interwebs.

The tariff would remain whether shipped from Viet Nam or China.]

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I don’t mean rerouted as in shipped. I mean rerouted as in moved, production-wise, lock, stock and barrel. I fully expect even Chinese brands that have a significant US market, in dollar terms, to move production out of China, whether it’s to Vietnam or Indonesia. 25% is a huge tariff in a world where 10% net margins are considered very comfortable. For Chinese manufacturers, there’s the added bonus, for the corporate owners, of getting their capital out of the clutches of the Communist Party. In this respect, I expect even Party members have their own side gigs going. It’s a lot easier to seize property in China than in foreign countries, where Chinese owners can give foreign pols an ownership share to stop in its tracks any Chinese Communist Party attempt to seize those assets on trumped-up charges.

https://www.economist.com/asia/2016/04/07/the-panama-papers-embarrass-chinas-leaders

[Retvet]

I refuse to buy Chinese products. The quality of their products is worse than Japanese or Korean products ever were. Plus they have repeatedly put virus into digital equipment like thumb drives. They also put monitoring programs in phones.

[bgill]

Half of those are redundant. Why should both countries import and export computers?

Good to see we personally don’t buy much of China’s imports. Not in the market for computers (knock on wood this on holds out longer) or electronics. Haven’t bought any clothes since 2009 and make my own with thrift store fabric. The last leather good I purchased was a purse from the church’s yard sell a few years ago. Constantly repairing the cheapo Rooms R Us living room set (never again). Sure, imports may in used in the utilities and services we use.

[indthkr]

Chicom imports bump for later....