Five years into the trade war, China continues its slow decoupling from US exports

US-China trade war of 201819 devastated US exports to China, which cratered during President Donald Trump’s trade war.

China is now shifting some purchases of foreign goods away from the United States.

US agriculture gains were not the result of increased shipments but simply higher prices and concerns over global food insecurity.

US sales of manufacturing goods to China dropped by 3 percent from 2021 and are now, once again, below pre-trade war levels.

US semiconductors and semiconductor manufacturing equipment had been one of the few bright spots for manufacturing over 202021, even exceeding expectations under the phase one agreement.

Autos and aircraft are additional sectors showing little signs of recovery in 2022.

US energy exports to China plunged, as trade routes realigned with Russia’s war on Ukraine.

US exports of LNG and coal to China fell sharply, with exports of crude oil up only slightly, despite much higher prices for all three commodities.

China shifted its energy sourcing toward Russia, Malaysia, Qatar (LNG), and Mongolia (coal) In 2022, China also mined 11 percent more coal than the year before, its largest annual increase since 2005.

US services exports to China in 2022 were only 7 percent higher than 2021.