China continues to reduce its dependence on US exports

While U.S. EXPORT data released Feb. 7 shows that exports to CHINA increased by $2.4 billion for the year and hit a "record high" of $153.8 billion in 2022, that's an "empty statement," according to a new report. Institute for International Economics (PIIE), which identifies inflation as the main reason for this figure.

In response to a REUTERS question about whether Chinese officials should be worried that a growing surplus with the US could hinder China's efforts to lower US tariffs on Chinese goods, Shu said the United States should "remove trade restrictions to Chinese enterprises.

According to her, this is necessary to "create conditions for enterprises on both sides to expand trade cooperation and reduce the trade deficit through dialogue."

In 2022, the merchandise trade gap with China widened from $29.4 billion to $382.9 billion.

“Based on market demand, Chinese enterprises are importing a large amount of agricultural products, automobiles, science and technology, energy, and petrochemicals,” Shu added, arguing that “China’s exports have lowered US inflation.”

PIIE researchers warned that "recently released data for 2022 shows that US exports are falling further and further behind their overseas counterparts sold to the Chinese market."

Trade tensions between the United States and China have been mounting since the first phase of the US-China trade deal expired in late 2021.