It feels like everything we buy comes from China. In fact, less than 3 percent of personal spending in the U.S. goes to China, according to a new report from the SF Fed.
That's partly because most personal spending goes to things like health care and housing that are, by definition, produced in the U.S.
But even when you look at the "goods" category, Americans spend way more on stuff that's made in the U.S. than on stuff that's made in China.
For the big-ticket items in the durable goods category (cars, furniture, etc.), about two thirds of personal spending goes to stuff made in the U.S. Just over 10 percent goes to China.
For smaller stuff — food, clothes, gas, etc. — 76 percent of personal spending goes to goods made in the U.S., and 6 percent goes to goods made in China.
If all that's true, why does it feel like everything we buy is made in China?
Three possibilities come to mind (though I'm sure there are others).
1. We buy a lot of cheap stuff from China. So we notice the volume of stuff, but not the fact that it accounts for a small chunk of our overall spending.
Of all the subcategories the report breaks out, "clothing/shoes" is the only one where we spend more on Chinese goods than on U.S. goods. But clothing and shoes accounts for only 3.4 percent of our total spending.
2. We're always hearing about our big trade deficit with China. In May, for example, our exports to China totaled $7 billion , and our imports from China totaled $29 billion. That is indeed a big deficit. But that $29 billion in imports is tiny compared with the overall size of the U.S. economy: Our economic output is well over $1 trillion per month.
3. U.S. manufacturing jobs have been disappearing for years. But that doesn't mean the U.S. manufacturing industry is disappearing. U.S. manufacturing is growing over the long term — but it's shifting more and more into high-tech systems that don't require factories full of assembly-line workers.
Note: When I say "personal spending," I mean personal consumption expenditures, a category that accounts for about two-thirds of the U.S. economy.
Hat tip: Yglesias
FAQs
U.S. goods imports from China totaled $536.3 billion in 2022, up 6.3 percent ($32.0 billion) from 2021, and up 26 percent from 2012.
How much of the stuff we buy is made in China? ›
It feels like everything we buy comes from China. In fact, less than 3 percent of personal spending in the U.S. goes to China, according to a new report from the SF Fed.
How much trade do we get from China? ›
U.S. export totaled $153.8 billion, an increase of 1.6% ($2.4 billion) from 2021; U.S. imports from China totaled $536.8 billion, an increase of 6.3% ($31.8 billion); and the trade deficit with China was $382.9 billion, an increase of 8.3% of ($29.4 billion).
Who buys from China the most? ›
List of largest trading partners of China
| Rank | Country / Territory | Trade balance |
|---|
| - | ASEAN | 159.2 |
| - | European Union | 276.6 |
| 1 | United States | 404.4 |
| 2 | South Korea | -37.0 |
22 more rowsChina Exports to United States was US$501.22 Billion during 2023, according to the United Nations COMTRADE database on international trade. China Exports to United States - data, historical chart and statistics - was last updated on April of 2024.
What would happen if we stopped buying from China? ›
Disruption to the Global Supply Chain – China still plays a critical role in our global supply chain, with up to 35% of apparel alone being imported into the U.S. from China in 2023. Therefore, if we were to drop 'Made in China' products entirely – the world would suffer from a massive global supply chain disruption.
What would happen if the US stopped trading with China? ›
As a result, if the United States and other countries were to stop trading with China, it would disrupt global supply chains and cause economic disruptions in many countries.
How much money does China owe the US? ›
The United States pays interest on approximately $850 billion in debt held by the People's Republic of China. China, however, is currently in default on its sovereign debt held by American bondholders.
What does the US rely on China for? ›
In 2021, of $506.4 billion in the U.S. imports from China, the top commodity sectors were Machinery and Mechanical Appliances (47.7% of total U.S. imports from China), Furniture, Bedding, Lamps, Toys, Games, Sport Equipment, Paint, and Other Miscellaneous Manufactured Items (13.5%), and Chemicals, Plastics, Rubber, and ...
What does China give to the US? ›
The top U.S. import commodities from China are fruits and vegetables (fresh/processed), snack food, spices, and tea – the combined which accounts for nearly one-half of the total U.S. agricultural imports from China.
Why is Chinese Manufacturing Frequently More Affordable than That of Other Countries? China's manufacturing sector is generally more cost-effective because of a number of advantages, including trained workers, economies of scale, cheaper labor costs, and supportive government policies.
What is China's biggest product? ›
Machinery such as computers, broadcasting technology, and telephones as well as transport equipment make up the largest part of Chinese exports. This category amounted to approximately 1.69 trillion U.S. dollars in export value in 2022.
Who is China's biggest buyer? ›
China top 5 Export and Import partners
| Market | Trade (US$ Mil) | Partner share(%) |
|---|
| United States | 577,125 | 17.16 |
| Hong Kong, China | 349,442 | 10.39 |
| Japan | 165,823 | 4.93 |
| Korea, Rep. | 148,847 | 4.43 |
1 more rowTop 5 U.S. Exports
- Oil.
- Civilian Aircraft Parts.
- Gasoline and Other Fuels.
- Liquified Natural Gas (LNG) and Other Petroleum Gases.
- Passenger Vehicles.
In 2023, the total value of the U.S. trade in goods with China amounted to around 575 billion U.S. dollars composed of a 147.8 billion U.S. dollars export value and a 427.2 billion U.S. dollars import value.
How much money does the US make from China? ›
China Trade & Investment Summary
U.S. goods and services trade with China totaled an estimated $758.4 billion in 2022. Exports were $195.5 billion; imports were $562.9 billion.
What percent of US goods are made in China? ›
Of the 2.7% of U.S. consumer purchases going to goods labeled “Made in China,” only 1.2% actually represents China-produced content. If we take into account imported intermediate goods, about 13.9% of U.S. consumer spending is attributable to imports, including 1.9% imported from China.
What percent of US goods come from China? ›
China's Share in U.S. – World Trade
China has the third largest share in U.S.–World Trade following Mexico and Canada. In 2021, 8.6% of total U.S. exports of $1.8 trillion to the World were exported to China and 17.9% of total U.S. Imports of $2.8 trillion were imported from China.
What percentage of stuff in America is made in China? ›
China, including Hong Kong, still dominates the sourcing landscape, supplying 40.7 percent of U.S. imports last year.
Is everything we buy made in China? ›
Summary. China is now the world's leading manufacturer, with goods exports rising from $63 billion in 1990 to $2.5 trillion in 2018. The popular assumption is that everything is now made in China, and that falling manufacturing employment in the EU and US is due to this. The assumption is wrong.
