U.S.-China Trade War Over Technology Heats Up
U.S.-China Relations Tense, Economies Intertwined
Five years after former President Donald Trump launched his China trade war, the world's two biggest economies are still very much intertwined. Two-way U.S.-China trade, including Hong Kong, hit a record $725 billion in 2022, up 2.5% from 2018.
That's not to say there's no decoupling. Trade in semiconductors and Boeing jets has tumbled. Agricultural exports to China have surged, but that's thanks to food inflation.
Over the same period, U.S.-Vietnam trade exploded by $80 billion to $139 billion. China's exports to Vietnam, however, more than doubled over the past five years. Much of the growth in exports to Vietnam came in areas like computer accessories and telecom equipment, where Chinese exports to the U.S. fell.
The implication: "China may be exporting less to the United States directly, but it is now indirectly exporting more."
