China has reached a new milestone in global trade, achieving a record-high $1 trillion surplus for the first time in history despite facing high U.S. tariffs. However, the structure of its international trade is experiencing a notable shift, particularly in its relationship with the United States.
China's overall exports in November grew by 5.9% Y-O-Y, while exports to the US saw a sharp decline of 29%, highlighting strong global demand in many other markets.
To compensate for the decline in the U.S. market, China has substantially boosted exports to other regions such as Europe, Africa, Latin America, and the rest of Asia. This adaptability highlights its resilience but also heightens its economic dependence on these regions, potentially exposing it to future trade tensions.
The biggest mistake the US made was allowing China to join the WTO. The US relocated its factories to China, hollowing out its industrial base. Consequently, China became the world's factory. In a way, the US inadvertently funded the rise of its most formidable rival it ever faced.
China's overall exports in November grew by 5.9% Y-O-Y, while exports to the US saw a sharp decline of 29%, highlighting strong global demand in many other markets.
To compensate for the decline in the U.S. market, China has substantially boosted exports to other regions such as Europe, Africa, Latin America, and the rest of Asia. This adaptability highlights its resilience but also heightens its economic dependence on these regions, potentially exposing it to future trade tensions.
The biggest mistake the US made was allowing China to join the WTO. The US relocated its factories to China, hollowing out its industrial base. Consequently, China became the world's factory. In a way, the US inadvertently funded the rise of its most formidable rival it ever faced.
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