I’m thinking of writing a series related to country-to-country (as well as overall global) trade. For now, it’s called “Macro Framework”. It’s a working title, but I like it. It might be the name going forward.
Today’s focus is on the United States and China.
Top Exports, Imports in 2021
From the US to China, soybeans and integrated circuits are the top exports. The US also exports a lot of personal travel to China, and less so, licensing fees. From China to the US, it’s all technology. The top exports to the US are computers and broadcasting equipment.
In 2022, US exports to China were $195.5 billion, while imports were $562.9 billion. The US goods and services trade deficit with China totalled to $367.4 billion.
The Recent Separation
It’s been widely documented that the US has wanted to step back from its reliance on Chinese imports. The same goes for certain European countries. However, the overall process is slow because supply chain shifts take time.
Production shifts have been moving to other Asian countries, including India (smartphones) and Southeast Asian countries like Vietnam and Thailand (both semiconductors/chips). Mexico and Canada are benefiting from the growing desire for shorter supply chains post-Covid.
Basic Info from 2022
The US has the world’s biggest economy. The juggernaut has a GDP of $25.46 trillion, a population of around 333.2 million people, and a life expectancy of 77.5 years. The US has 131 million households (median real income of $74,580), with an average household size of 2.6 people.
China has the world’s second-biggest economy with $17.9 trillion in GDP. The country is the world’s most populous country, with 1.4 billion people. Life expectancy is at 77.3 years. There are 494.1 million households (2021) with an average household size of 2.7 people. There are conflicting numbers for median income, but the median per capita disposable income is 31,370 yuan or around 4371.3 dollars.
For a quick overview of the macro factors affecting the US, Europe, and the UK, check out this post!