China and the United States set a new record! Amid the shouts of "decoupling", Sino-US trade hits a new high
Despite the overwhelming talk of "decoupling", the importance of the US-China relationship is still evident.
According to a recent Bloomberg News report,Despite politicians in Washington clamoring for a "decoupling" from the Asian economic powerhouse, trade between the two countries is poised to break records.
U.S. federal government data show that as of November 2022, the total import and export volume of the United States and China will be at least close to or even reach the highest level in history. Although there will be no specific data from the US until February, but Beijing's full-year data show that in 2022, Sino-US trade volume will reach a record high of about 760 billion U.S. dollars.
All signs point to an increase in U.S.-China trade despite U.S. President Joe Biden’s push for protectionist policies such as “Buy American” and the Inflation Cut Act. Moreover, this is against the backdrop of former President Trump launching a trade war against China.
also,There are also some remarks that the United States persuaded some major European countries to withdraw from the Chinese market. This is not true.German auto giant Mercedes-Benz, for example, still plans to continue its business in China and considers it a "very important market" no matter what politicians say.
Jörg Bözer, head of production at Mercedes-Benz, said in a recent interview with Bloomberg Television that the automaker wants to maintain its supply chain in China out of resilience, reliability and low-carbon principles.
The process of globalization is all about reducing friction, which means reducing the barriers between people and the goods and services they want.China has relatively cheap but skilled labor that, if harnessed, can make goods and services more accessible. That said, integrating China into global supply chains can help reduce friction.
All businesses have a natural tendency to want to reduce barriers. The goal of companies is to deliver their products and services to as many people as possible, which is why companies have not withdrawn from the Chinese market as planned by politicians. Because doing so would create more barriers in the global supply chain, it would build a huge wall between people, goods and services.
What is special about China is that it is so important.China's role in reducing global economic friction is so critical that "decoupling" from China would set back economic development for many years.It can be said that China is the core engine of the global economy. Removing it will inevitably affect the progress of the economic wheel.
Business people fear that politicians' rhetoric will have bad consequences, and it's real. "We cannot afford the consequences of geopolitical issues," Sulayem, chairman and chief executive of DP World, told Bloomberg Television. Businessmen know how to run their businesses and how to make money, but they cannot predict what the country's leaders will do, he said.
This is a very instructive point, because even the threat of "decoupling" can cause panic, and bad emotions will eventually affect reality. That is why politicians in Washington, who are responsible for the harsh language on trade policy, should tone down. As we can see, the "decoupling" didn't happen - and let's be honest, no one really wanted it to happen. But the constant clamor for "decoupling" will only create unnecessary trouble.
The recent meeting between Chinese and American officials is a good example that problems between the two countries can be resolved amicably. Hopefully this will help reduce diplomatic friction between Washington and Beijing.
