The trade volume is 1.18 trillion! my country will become the second largest trading partner of the United States, what does it import
The trade volume is 1.18 trillion! my country will become the second largest trading partner of the United States, what does it import?
The United States and China, as the two largest economies in the world, have a huge amount of foreign trade every year. For a long time, China has been the largest trading partner of the United States, and the data for the first quarter of 2022 shows that in the first quarter, China has dropped to the second trading partner of the United States.
Canada became the U.S.'s largest trading partner in the past first quarter. Why has my country's trade status in the United States declined? What kind of goods has my country imported from the United States, and which products does the United States highly rely on China?
A decline in status
According to the latest Q1 foreign trade data released by relevant agencies, the bilateral trade volume between China and the United States was US$148.692 billion, equivalent to RMB 1.18 trillion. Compared with the level of the same period last year, it has increased by 19.3%. Although my country faced the test of the epidemic in the first quarter, from the perspective of export data, production capacity has not been greatly affected.
Although the bilateral trade volume between China and the United States has exceeded one trillion in the first quarter, the total trade volume of another country with the United States is even higher, and this country is Canada. As a neighbor of the United States, Canada's bilateral trade volume with the United States reached US$188.641 billion in the first quarter, a year-on-year increase of 23.1%, making Canada the largest trading partner of the United States. So why is Canada able to achieve this achievement?
The key reason is that the international events that broke out in late February led to skyrocketing international energy prices. Energy prices began to skyrocket amid a severe drop in supply expectations in world energy markets. As a country with large reserves of energy resources, Canada's energy industry contributes 11% to GDP.
In this wave of rising energy prices, the beneficiary of Canada's trade volume with the United States is naturally rising. The key lies in the rise in energy export prices and export volumes. This situation is expected to continue in the next few months.
Although China has dropped to the second largest trading partner of the United States, the ties between the two countries in foreign trade are still very close. Next, let's take a look at what products China mainly imports from the United States, and which products the United States relies most on China.
2. China imports US products
China's major U.S. imports include agricultural products, aerospace products, semiconductors and medical devices. Many people may be wondering, why does China import American agricultural products in bulk? my country itself is a big agricultural country, and it is already self-sufficient in food, so why import American agricultural products?
The key factor is the price of food. The advantages of the plains terrain and highly mechanized agricultural production in the United States are significant advantages in the price of agricultural products in the United States. In other words, we are buying American agricultural products much cheaper than buying them at home! In addition to agricultural products, we are also very dependent on American technology products.
Taking chip products as an example, since 2018, the total amount of chips imported by my country each year has exceeded 300 billion US dollars. The United States has a market share of 52% in the world's chip suppliers, occupying half of the country, which means that many of the chips imported by my country every year are provided by the United States.
And in the field of these technological products, American products have a leading edge in technology and are irreplaceable high value-added export products. So as my country, as a power supply chain power, what products does the United States rely on most from my country?
3. China imports US products
The United States relies heavily on imports of textiles, consumer goods, auto parts and other primary products from China. Of the auto parts imported into the United States, 12% come from China, and 20% of the garlic that Americans consume on a daily basis is imported from China.
And China is the world's largest producer of air conditioners, accounting for 80% of the world's total output; China also has the title of "Kingdom of Rare Earths", accounting for 97% of the world's rare earth production. This also means that the United States will have to rely on China for these two products, but in general, my country is at a disadvantage in foreign trade transactions with the United States.
Because the United States relies on my country's primary manufacturing products and raw materials, the added value of these products is very low and can be replaced. However, the high value-added technology products exported from the United States to my country are not easily replaced. In order to break this unfavorable situation, my country must continue to accelerate the pace of industrial upgrading and economic transformation, and continue to enter a higher-end supplier status in the global industrial chain.
In the past first quarter, the trade volume between China and the United States reached 1.18 trillion US dollars. Although the amount was huge, it was beaten by Canada and became the second largest trading partner of the United States. my country mainly imports agricultural products and high-value-added technology products from the United States, and the substitution is very weak. This also means that the United States is easy to "stuck" my country in the field of technology product exports. However, with the acceleration of China's economic transformation and industrial upgrading, This situation will also be effectively improved.