China’s economic resilience is being tested again as new U.S. tariffs loom, but a recent analysis suggests a surprising twist: the world’s second-largest economy is becoming less dependent on American trade than ever before. According to the Council on Foreign Relations, China’s shrinking reliance on U.S. markets could soften the blow of a proposed 10% tariff hike on Chinese exports.
The shift reflects China’s growing trade ties with emerging markets in Asia, Africa, and Latin America, as well as its expanding domestic consumer base. While the U.S. remains a key partner, bilateral trade accounted for just 11.4% of China’s total foreign trade in 2023 – down from 14.3% five years earlier, according to Chinese customs data.
Economists suggest this trend could recalibrate global supply chains and give Beijing more flexibility in trade negotiations. “China’s strategic focus on diversifying its economic partnerships is paying dividends,” the report notes, highlighting increased tech self-sufficiency and regional trade pacts like RCEP as contributing factors.
Reference(s):
cgtn.com
