Quick access to main page (top) Direct access to main contents Quick access to main page (bottom)

Mexico Overtakes China as Top U.S. Exporter – First Time in 17 Years

Eugene Park Views  

With a sharp decline in Chinese imports, Mexico poised to surpass China
Shift in the U.S. Import Market

중국 콘테이너
A container of Chinese imports loaded in the Port of Savannah, Georgia, USA on July 5, 2018./AP·Yonhap News

Last year marked a significant shift in China’s position in the U.S. import market, with its share expected to fall from the top spot for the first time in 17 years, dating back to 2006.

According to trade statistics from the U.S. Department of Commerce, the volume of goods imported from China experienced a sharp decline of over 20% from January to November last year. This decline made it increasingly likely that Mexico would surpass China in annual imports, as reported by Nihon Keizai Shimbun on the 10th.

In the U.S. import market for the same period, Chinese goods accounted for just 13.9%, marking the lowest share since 2004. This represents a significant decrease of 7 percentage points compared to the peak in 2017, which stood at over 21%.

Impact on Supply Chains

Nikkei’s interpretation is that the U.S. is shifting toward “friend-shoring,” where it establishes a supply chain centered around its allies and friendly nations. As a result, supply chains for items like home appliances, which previously heavily relied on imports from China, are diversifying to other countries. From January to November last year, the proportion of Chinese-made smartphones imported into the U.S. dropped by 10% compared to the previous year, while those made in India increased fivefold. Chinese-made laptops also saw a 30% decrease, while Vietnamese-made ones surged fourfold. Imports of Chinese-made clothing, furniture, and semiconductor manufacturing equipment continued to decline.

중국 미국 칩
A central processing unit (CPU) semiconductor chip is placed on the American flag and the Chinese flag./Reuters·Yonhap News

Geopolitical Risks and the “China Plus One” Movement

Nikkei diagnosed that the “China Plus One” movement is spreading due to geopolitical risks surrounding China, as global companies are trying to avoid excessive dependence on China.

Niels Graeme, associate director of the Atlantic Council GeoEconomics Center, predicted that while it will take years for China Plus One to impact U.S. import statistics fully, its influence will continue in the long term.

Diversification of U.S. Imports

Not only Mexico, which is expected to break the record for the highest amount ever last year but also imports from Europe and Southeast Asia are increasing. From January to November last year, the number of imports from the European Union (EU) broke the record for the highest ever. Although the number of imports from the Association of Southeast Asian Nations (ASEAN) decreased compared to the previous year, it was the second highest. The share doubled compared to 10 years ago.

Meanwhile, the U.S. Department of Commerce announced on the same day that the U.S. trade deficit in November last year was $63.2 billion, down 2.0% from the previous month.

Exports decreased by $4.8 billion (1.9%) to $253.7 billion compared to the previous month, but imports also decreased by $6.1 billion (1.9%) to $316.9 billion, reducing the deficit. The trade deficit with the EU decreased by $3.5 billion to $15.6 billion compared to the previous month, and the trade deficit with China also reduced by $2.4 billion to $21.5 billion.

By. Man Joo Ha

Eugene Park
content@www.kangnamtimes.com

Comments1

300

Comments1

  • Joseph Buckwalter

    Some lawmakers have pushed for laws limiting foreign ownership of U.S. farmland. Last July, the Senate voted on a bill to prohibit individuals or companies from China, Russia, Iran, and North Korea from selling farmland of a certain size or value, but it was not ultimately enacted into law. Why ?

[BUSINESS] Latest Stories

  • Trump vs. Harris: Which U.S. Election Outcome Will Boost Stocks the Most?
  • THIS is the Country Jensen Huang Thinks Will Lead the AI Revolution
  • Volkswagen Shutting Down German Plant for the First Time Ever—Big Layoffs Expected
  • Google's Tax Tricks: How They Pay Pennies on Billions in Korean Revenue
  • Here’s What It Said on North Korea’s Propaganda Leaflets that Dropped Near Presidential Office
  • Why Samsung’s Founder Said 'Burn Them All' to His Own Phones

Weekly Best Articles

  • Trump vs. Harris: Which U.S. Election Outcome Will Boost Stocks the Most?
  • Kim Sejeong on Kiss Scene Prep: ‘It’s Like Laying the Foundation for a Building!’
  • Kim Tae Ri’s Character Faces Devastating Setback in ‘Jeongnyeon: The Star is Born’
  • Lee Seung Gi Goes Bald! Shocking Change for His Role in ‘About Family’
  • Man Who Sponsored $1.2M to Streamer Juice Se Yeon Says She Blocked Him After Scandals
  • BTS Music Video Star and Tattoo Model Kim Woo Young Remembered 6 Years Later
  • Outback’s Last Ride: Subaru Launches 30th Anniversary Edition with Exclusive Features
  • Chrysler’s 2025 SUV: A Glimpse into the Future of Electric Vehicles
  • Fiat’s ‘Ugliest Car’ Makes a Comeback with Hyundai’s Pixel Design Twist
  • THIS is the Country Jensen Huang Thinks Will Lead the AI Revolution
  • Volkswagen Shutting Down German Plant for the First Time Ever—Big Layoffs Expected
  • Kim Nam Gil Spills Secrets About The Fiery Priest 2—Why Fans Should Be Excited

You May Also Like

  • 1
    G-Dragon’s Secret Addiction? The K-pop Star Can’t Stop Watching Dating Shows

    ENTERTAINMENT 

  • 2
    Chef Triple Star Shows Up at Event Despite Explosive Cheating and Embezzlement Claims

    ENTERTAINMENT 

  • 3
    Jaehyun Joins the Military—Here’s What Happens to His Career While He’s Away

    ENTERTAINMENT 

  • 4
    BMW M3 to Feature 600 HP Mild Hybrid Powertrain—No Plug-in Hybrid Here!

    TECH 

  • 5
    Subaru BRZ Purple Edition: Only 500 Units Available in North America for $35,445

    TECH 

Popular Now

  • 1
    Brazil’s Beloved Nivus Gets a Facelift: New GTS Model Starts at $24,480

    TECH 

  • 2
    Tesla’s Roadster Returns: 621 Miles on One Charge and Insane Speed

    TECH 

  • 3
    Is Hydrogen the New Frontier? Alpine's HY6 Sports Car Shakes Up EV Market

    TECH 

  • 4
    Convertible Meets Pickup: Daihatsu’s Basket Concept Still Stuns with Innovative Design

    TECH 

  • 5
    Audi's Q6 Sportback e-tron and SQ6 to Hit US in 2025 with 408-Mile Range

    TECH 

Weekly Best Articles

  • Trump vs. Harris: Which U.S. Election Outcome Will Boost Stocks the Most?
  • Kim Sejeong on Kiss Scene Prep: ‘It’s Like Laying the Foundation for a Building!’
  • Kim Tae Ri’s Character Faces Devastating Setback in ‘Jeongnyeon: The Star is Born’
  • Lee Seung Gi Goes Bald! Shocking Change for His Role in ‘About Family’
  • Man Who Sponsored $1.2M to Streamer Juice Se Yeon Says She Blocked Him After Scandals
  • BTS Music Video Star and Tattoo Model Kim Woo Young Remembered 6 Years Later
  • Outback’s Last Ride: Subaru Launches 30th Anniversary Edition with Exclusive Features
  • Chrysler’s 2025 SUV: A Glimpse into the Future of Electric Vehicles
  • Fiat’s ‘Ugliest Car’ Makes a Comeback with Hyundai’s Pixel Design Twist
  • THIS is the Country Jensen Huang Thinks Will Lead the AI Revolution
  • Volkswagen Shutting Down German Plant for the First Time Ever—Big Layoffs Expected
  • Kim Nam Gil Spills Secrets About The Fiery Priest 2—Why Fans Should Be Excited

Must-Reads

  • 1
    G-Dragon’s Secret Addiction? The K-pop Star Can’t Stop Watching Dating Shows

    ENTERTAINMENT 

  • 2
    Chef Triple Star Shows Up at Event Despite Explosive Cheating and Embezzlement Claims

    ENTERTAINMENT 

  • 3
    Jaehyun Joins the Military—Here’s What Happens to His Career While He’s Away

    ENTERTAINMENT 

  • 4
    BMW M3 to Feature 600 HP Mild Hybrid Powertrain—No Plug-in Hybrid Here!

    TECH 

  • 5
    Subaru BRZ Purple Edition: Only 500 Units Available in North America for $35,445

    TECH 

Popular Now

  • 1
    Brazil’s Beloved Nivus Gets a Facelift: New GTS Model Starts at $24,480

    TECH 

  • 2
    Tesla’s Roadster Returns: 621 Miles on One Charge and Insane Speed

    TECH 

  • 3
    Is Hydrogen the New Frontier? Alpine's HY6 Sports Car Shakes Up EV Market

    TECH 

  • 4
    Convertible Meets Pickup: Daihatsu’s Basket Concept Still Stuns with Innovative Design

    TECH 

  • 5
    Audi's Q6 Sportback e-tron and SQ6 to Hit US in 2025 with 408-Mile Range

    TECH 

Share it on...