USA' s trade deficit with China in 2022 at $ 382.9 billion

13 Feb 2023 , 11:33 AM

 

 

While their governments disagree on a variety of economic and political problems, the US and China’s trade in products increased to a new level in 2022, serving as a reminder of how closely tied consumers and businesses in the world’s two largest economies remain.

The two countries combined merchandise trade increased to $690.6 billion last year, breaking the previous high set in 2018, according to Commerce Department figures released on Tuesday. Inflation correction is not applied to the data.

After a $419.4 billion deficit in 2018, USA’s trade deficit with China increased by 8% to $382.9 billion, the worst deficit ever. USA’s trade deficit  with all nations increased by 12.2% to close to $948 billion.

The expanding rift between Washington and Beijing, which has resulted from disagreements over issues like trade, human rights, and rivalry for markets and technology, poses a threat to the strengthening trade links between the nations. The release of the data coincides with a particularly tense period between the two countries following this week’s shooting down of an alleged Chinese spy balloon over US territory.

In an effort to persuade nations it deems allies to follow suit, Washington is moving forward with plans to restrict China’s access to crucial semiconductor technology.

By pushing Western businesses to invest in what Treasury Secretary Janet Yellen has referred to as ‘trusted trading partners,’ such as India, it is also attempting to minimise US dependence on China as a source of goods. 

A record $153.8 billion worth of goods were exported to China, while $536.8 billion worth of imports were made, slightly shy of the record established in 2018.

In addition to confronting Beijing over what it perceives to be violations of human rights, unfair economic practises, and dangers to US national security, the Biden administration has maintained a set of tariffs put in place by President Donald Trump.

In 2022, with a share of overall commerce of 13%, China remained the third-largest US trading partner for products. Mexico came in second at 14.7%, or $779.3 billion, while Canada maintained its lead with a 14.9% share worth $793.8 billion.

Vietnam moved up two spots to eighth place in the top-10 rankings compared to 2021, with a total trade volume of $138.9 billion.

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