Chinese Factories and Manufacturers must think that the United States is going through another Economic Lock-Down. Trade between China and the US continues to decline.
In June alone, Americans purchased 23.7% fewer goods and services from the Chinese than they did the year before. This decline is part of the trend that began last year. American imports from China have dropped six out of the previous eight months.
There are a couple of different factors at work here.
First, the fact that American buyers are cutting back is not a positive indicator for the US Economy. Everyone knows the US relies on Chinese manufacturing for many of our goods and components. So this cutback in wholesale purchases is a troublesome omen. The question needs to be asked: is the US Economy heading into a recession?
The second dimension at work here is the apparent move by China to embrace the “Global South.” The BRICS nations represent an emerging new multi-polar world. In contrast, the US and European Union have attempted to make Russia a pariah state because of its conflict with Ukraine. The Chinese are doing the opposite, fully embracing Russia diplomatically, militarily, and economically. Trade between these two allies is skyrocketing. June Trade between China and Russia was up an astounding 90%.
So while it was a policy of two US Administrations to cut back on Chinese Trade, China may have already found, at least, a partial alternative to America.
For the complete Chinese Trade Reports, go here:
http://english.customs.gov.cn/statics/report/monthly.html
