US exports to China fall in December

U.S. exports of goods to CHINA contracted in December, locking in a $45 billion widening in the U.S.-China trade deficit in 2021 and a severe two-year shortfall in Beijing's commitments to purchases under the Phase 1 trade deal negotiated by former President Donald Trump. REUTERS.

The U.S. Federal Statistics Service said on Tuesday that the U.S. merchandise trade deficit with China widened 14.5% to $355.3 billion, the largest since a record $418.2 billion in 2018. The gap in 2020 was $310.3 billion, a 10-year low.

US import from Chinain 2021 jumped $71.6 billion, or 16.4%, from 2020, or 16.4%, to $506.4 billion, the highest since 2018. Exports to China increased by $26.6 billion, or 21.3%, to a record $151.1 billion.

The U.S. global trade deficit widened 27% in 2021 to a record $859.1 billion.

But an increase in U.S. exports to China in 2021 was not enough to meet China's goals of increasing purchases of goods under the Phase 1 trade deal signed in January 2020 to stop the escalation of the tariff war on Chinese goods that Trump launched in 2018. year.

As part of the deal, Beijing agreed to increase purchases of US agricultural and industrial goods, energy and services by $200 billion over 2017 levels over two years, among other market access commitments. Purchase commitments expired at the end of 2021.

Deputy US Trade Representative Sarah Bianchi said last week that "it was very clear that the Chinese had not honored their obligations under the Phase 1 deal, and the Biden administration is working with Chinese officials to resolve this issue.

US officials also told Reuters early on Monday that they were losing patience with China's failure to close the shortfall in its purchase commitments.

China met only about 60% of its merchandise purchasing target in November, according to trade data compiled by Peterson Institute for International Economics senior fellow Chad Bone. The decline in US exports to China in December shows that China failed to catch up in the last month of 2021.