U.S. companies are accelerating efforts to reduce their dependence upon Chinese suppliers. Through the first five months of this year, U.S. imports from China were down 24% from one year ago, either to avoid the risk of being pinched between rival superpowers or as part of a longer term strategy to produce goods closer to customers. China’s role at the center of global manufacturing may be facing its stiffest challenge since the country joined the global trading system more than two decades ago. A combination of political and economic forces is driving the supply chain makeover. Japan is also buying less from China, but European countries are still buying from them.
The Biden administration has been reassuring the Chinese government that the U.S. only want to “de-risk” commercial ties by moving critical supply lines to the United States or allied countries – not pursue an economic divorce.
Read more: https://www.washingtonpost.com/business/2023/08/06/us-china-economy-trade-mexico/
