The tension in the diplomatic relationships between the USA and China, which started emerging in 2018, is now on its peak but despite this fact, record merchandise trade of 690 billion dollars (57 lakh crore Rupees) took place between the two countries in 2022. Merchandise export from the USA to China reached an all-time high at 153.8 billion dollars (12.69 lakh crore Rupees), while the import from China reached 536.8 billion dollars (44.3 lakh crore Rupees).
Asian Trade Centre Founder, Deborah Elms, is of the opinion that these statistics show that despite the differences between the governments of the two countries, the relations between the companies and consumers of both these nations with big economies remain to be colossal. Last year, the trade deficit of the USA with China also increased 8% to 31.6 lakh crore Rupees, which is the second-highest trade deficit after 2018’s 34.6 lakh crore Rupees. The US goods and service trade deficit with all the countries has also gone up by 12.2% to reach 82.5 lakh crore Rupees.
For quite a long time now, the USA’s Biden-government is trying to reduce the country’s dependence on China, and the companies of the western world are being motivated to invest in reliable trading countries like India. Back in 2018, the Trump-government of the USA had increased the import duty on goods which were imported into the country from China, and on the other hand, China had done the same. The Biden-government did not make changes to the import duty as well, but despite this, the strengthening trade with China seems to be opposite to the US government’s aim.