Trend US reliance on China falls while China's global supplier role holds

Summary

Washington views dependence on China as a serious threat to national and economic security and uses tariffs, curbs on Chinese leadership in new industries, restrictions on Chinese-made products and limits on high-tech supplies to reduce it. China responds with a mix of pressure on vulnerable US supply chains, rerouted exports through third countries, domestic-demand expansion and upgrading of its own industries. The report's analysis finds that US reliance on China has fallen sharply even as China's weight in global markets has grown. Exports reaching the US indirectly through third countries have, however, increased. The authors expect US supply chains to become less China-dependent without a complete break, while China's role as a global supplier holds and its drive to localise its own supply chains accelerates.