US trade exposure to China will remain high

Significance In January-November, imports of Chinese goods dropped more than 20% year-on-year. China’s share of total US imports plunged to 13.9% from 16.7% in the same period in 2022, while Mexico’s share rose from 14.9% to 15.5%; Canada’s share almost matched China’s. Impacts Chinese businesses will devise new strategies to conquer the US market. US firms will continue diversifying suppliers, reducing dependency on China and expanding ties with Mexico, South-east Asia and India. Chinese firms will supply intermediate products and equipment to aforementioned third countries and expand local production facilities.