The US v China in One Chart
[Opinion] It's easy to forget how important US products are to the Chinese economy, especially with 1.4 million mouths to feed
Good Morning From Taipei,
Let’s not kid ourselves. Nobody knows what President Trump II will do about trade, tariffs, and his love-hate relationship with China. Sure, he’s threatened to increased import duties, yet he’s also said that Xi Jinping is a friend (before Covid).
All this talk, including the implicit claim that America is not great, leads many to believe the US is somehow on the backfoot on trade. That’s just not true. American exports to China have plenty of strength, and the US is an important provider of many goods that China absolutely needs as its economy grows.
Take soybeans.1 China has more than 1.4 billion mouths to feed. It needs foreign sources of food, especially proteins in the form of meat and soybean, if it’s to keep its population satiated.
US medical products, including vaccines, pharmaceuticals and surgical supplies, are another category of goods which Chinese will increasingly need more of.
That’s not just income for the US, it’s leverage.
Thanks for reading.
Soybean exports by value fell in 2023 due to price, not quantity or demand.