U.S. companies are buying less from China as relations remain tense

[Synthaholic]

Go Joe Biden!!! He's depriving China of revenue and hard currency and lessening U.S. dependency on Chinese goods and the Chinese supply line, which caused shortages during and after the U.S. Covid wave, because China refused Western vaccines and their workers were either sick or locked down in isolation.

THIS is how you weaken an adversary. THIS is how you punish them for not boycotting Russian oil.

U.S. companies are buying less from China as relations remain tense​

Chinese imports down 24 percent through May, and Mexico is now the U.S.’s top trading partner​

U.S. companies are accelerating efforts to reduce their dependence upon Chinese suppliers, even as officials in Washington and Beijing labor to put a floor under their sour relationship.

Through the first five months of this year, U.S. imports from China were down 24 percent from the same period one year ago, according to the Census Bureau. Companies such as HP, Stanley Black & Decker and Lego are among those that have been repositioning their supply lines for American consumers, either to avoid the risk of being pinched between rival superpowers or as part of a longer term strategy to produce goods closer to customers.

Either way, China’s role at the center of global manufacturing may be facing its stiffest challenge since the country joined the global trading system more than two decades ago. Mexico, Vietnam and Thailand are nibbling at China’s dominance, though they lack its size and world-class infrastructure.

A combination of political and economic forces is driving the supply chain makeover.

 

[The Duke]

That's because Biden kept some of Trump's tariffs in place.

"Why Biden is keeping Trump’s China tariffs in place"

https://www.cnn.com/2022/01/26/politics/china-tariffs-biden-policy/index.html

 

[Synthaholic]

That's because Biden kept some Trump tariffs in place.

"

Why Biden is keeping Trump’s China tariffs in place"​

https://www.cnn.com/2022/01/26/politics/china-tariffs-biden-policy/index.html

Chinese tariffs are a tax on U.S. consumers.

Who pays Trump's tariffs, China or U.S. customers and companies?​

(Reuters) - U.S. President Donald Trump says China pays the tariffs he has imposed on $250 billion of Chinese exports to the United States.

But that is not how tariffs work. China’s government and companies in China do not pay tariffs directly. Tariffs are a tax on imports. They are paid by U.S.-registered firms to U.S. customs for the goods they import into the United States.

Importers often pass the costs of tariffs on to customers - manufacturers and consumers in the United States - by raising their prices.

U.S. business executives and economists say U.S. consumers foot much of the bill through rising prices.

 

[The Duke]

Chinese tariffs are a tax on U.S. consumers.

 

[Synthaholic]

Importers often pass the costs of tariffs on to customers - manufacturers and consumers in the United States - by raising their prices.

U.S. business executives and economists say U.S. consumers foot much of the bill through rising prices.

This is further proof that any inflation is Trump's fault.

 

[Synthaholic]

I can't stop winning!

 

[The Duke]

This is further proof that any inflation is Trump's fault.

No, the main driver of inflation is the increase of the price of diesel, which moves everything around the country.

Diesel is tied to the price of almost all consumer goods.

And Biden made sure that was going to go to the highest price ever on day 1.

https://www.energy.gov/sites/default/files/2021/02/f83/eo-13990-protecting-public-health-environment-restoring.pdf

And it did.

Diesel sees highest price, biggest increase in history of DOE/EIA benchmark

The commodity price of diesel went on a wild ride, up by a huge amount late Sunday before falling back.

www.freightwaves.com

It's come down a lot now, pretty sure most of that policy was walked back due to extreme blowback.

 

[Manonthestreet]

Sounds like a recession

 

[Toddsterpatriot]

U.S. companies are accelerating efforts to reduce their dependence upon Chinese suppliers, even as officials in Washington and Beijing labor to put a floor under their sour relationship.

Through the first five months of this year, U.S. imports from China were down 24 percent from the same period one year ago, according to the Census Bureau.

How is this Biden's doing?

 

[Toddsterpatriot]

I can't stop winning!

If you don't start, how can you stop?

 

[The Duke]

How is this Biden's doing?

It's more than likely tied to Americans having less disposable income.

When food, housing, and electricity cost a lot more, and most of that does not come from China, and are

things people need, yeah, people are going are going to be spending for what they need and not Chinese goods.

I expect this to ripple through China's economy pretty hard.

Also a contraction of the economy in America as well.

 

[Synthaholic]

How is this Biden's doing?

From the OP:

A combination of political and economic forces is driving the supply chain makeover.

I guarantee that if it was bad news, you would be blaming Biden. So, he gets the credit for good news.

 

[Synthaholic]

It's more than likely tied to Americans having less disposable income.

When food, housing, and electricity cost a lot more, and most of that does not come from China, and are

things people need, yeah, people are going are going to be spending for what they need and not Chinese goods.

I expect this to ripple through China's economy pretty hard.

Also a contraction of the economy in America as well.

The economy is so great, the Fed has to keep increasing interest rates to try to slow it down.

 

[Synthaholic]

"Amid rising national security concerns, the administration has restricted exports to China of the most advanced semiconductors and plans soon to announce new limits on U.S. investment in Chinese technology sectors."

 

[Synthaholic]

How Trump’s Tariffs Really Affected the U.S. Job Market

A recent study on U.S.-China trade concludes that Trump’s trade policies cost the U.S. economy nearly a quarter million jobs.

 

[Toddsterpatriot]

From the OP: A combination of political and economic forces is driving the supply chain makeover.

What political forces that are due to Biden?

 

[Toddsterpatriot]

The economy is so great, the Fed has to keep increasing interest rates to try to slow it down.

2.4% growth requires higher interest rates to slow down? LOL!

 

[Toddsterpatriot]

"Amid rising national security concerns, the administration has restricted exports to China of the most advanced semiconductors and plans soon to announce new limits on U.S. investment in Chinese technology sectors."

Does this mean fewer payoffs for the Big Guy?

 

[Kruska]

Go Joe Biden!!! He's depriving China of revenue and hard currency and lessening U.S. dependency on Chinese goods and the Chinese supply line, which caused shortages during and after the U.S. Covid wave, because China refused Western vaccines and their workers were either sick or locked down in isolation.

THIS is how you weaken an adversary. THIS is how you punish them for not boycotting Russian oil.

U.S. companies are buying less from China as relations remain tense​

Chinese imports down 24 percent through May, and Mexico is now the U.S.’s top trading partner​

Sure - isn't it great that China, thanks to Trump and now Biden, spend $billions to set up their own plants or JV's in Mexico, Philippines, Vietnam, Malaysia, Indonesia, etc. etc?
BTW, the US depends even more on imports now, then during the Trump administration.

Quote:
"The sanctions will ask Silicon Valley companies to forgo sales to China and China represents by far the most important market to these American companies, such as Nvidia for chips and Lam Research and Applied Materials for equipment,"
Lam Research Corp, a major semiconductor manufacturing equipment company in the US, reported that China represented 31 percent of its revenue during the June 2022 quarter.

According to the Ministry of Commerce, the foreign direct investment (FDI) into the Chinese mainland, in actual use, expanded 14.5 percent year on year to 127.69 billion yuan in January. In U.S. dollar terms, the FDI inflow went up 10 percent year on year to 19.02 billion dollars.

The International Monetary Fund in January projected that China's economy will grow by 5.2 percent in 2023, 0.8 percentage points higher than its October 2022 forecast.

Credit rating agency Fitch Ratings revised its forecast for China's economic growth in 2023 to 5 percent from 4.1 percent. Bank of America and Morgan Stanley also raised their forecasts to 5.5 percent and 5.7 percent, respectively.

It's amazing as to no matter what US administration - how they keep bullshitting their own population in regards to China.

 

[Synthaholic]

Sure - isn't it great that China, thanks to Trump and now Biden, spend $billions to set up their own plants or JV's in Mexico, Philippines, Vietnam, Malaysia, Indonesia, etc. etc?
BTW, the US depends even more on imports now, then during the Trump administration.

Quote:
"The sanctions will ask Silicon Valley companies to forgo sales to China and China represents by far the most important market to these American companies, such as Nvidia for chips and Lam Research and Applied Materials for equipment,"
Lam Research Corp, a major semiconductor manufacturing equipment company in the US, reported that China represented 31 percent of its revenue during the June 2022 quarter.

It's amazing as to no matter what US administration - how they keep bullshitting their own population in regards to China.

Link?