Global Trade Contracts as US Consumer Demand Declines
US imports of consumer goods, particularly home electronics, experienced a record 17% decline in the second quarter of 2023, impacting world trade. Major exporters of electronics, including Taiwan, South Korea, and China, also saw corresponding declines in exports. The US manufacturing sector has slowed, with challenges in stimulating demand and slower growth in service sector output. China's exports to the US dropped by 25% in the first half of 2023, narrowing Beijing's trade surplus with Washington. However, the claim that China's decline in exports is due to re-shoring is false, as imports from US allies like Mexico, Vietnam, and India have increased. Studies show that while the US may be reallocating its sourcing and imports to other countries, it remains indirectly connected and dependent on China through third-countries like Vietnam and Mexico.
