Cutting China off from the U.S. would cost America hundreds of billions of dollars, report says (2024)

FAQs

What would happen if the US stopped trading with China? ›

If the U.S. is forced to sell half of its direct investments in China, that would cost American investors $25 billion a year in capital gains and up to $500 billion in GDP losses, the report said. U.S. businesses risk losing global competitiveness if sweeping policies force separation from China, the report said.

U.S. goods and services trade with China totaled an estimated $615.2 billion in 2020. Exports were $164.9 billion; imports were $450.4 billion. The U.S. goods and services trade deficit with China was $285.5 billion in 2020.

BEIJING -- The U.S. is unlikely to survive without its Chinese trading partner, the world's No. 2 economy, China's top commerce official said on Saturday. "American and Western friends always think China cannot survive without the U.S.," said Commerce Minister Zhong Shan.

Today, the United States imports more from China than from any other country, and China is one of the largest export markets for U.S. goods and services. This trade has helped the United States in the form of lower prices for consumers and higher profits for corporations, but it has also come with costs.

2021, China owns $1.095 trillion of the total $28 trillion U.S. national debt.

The counterintelligence and economic espionage efforts emanating from the government of China and the Chinese Communist Party are a grave threat to the economic well-being and democratic values of the United States. Confronting this threat is the FBI's top counterintelligence priority.

It is the world's third-largest creditor, and it is a major lender to developing economies. China also happens to be America's second largest international creditor. And yet China remains highly dependent on the dollar and access to America's financial system in terms of international trade and finance.

TOKYO/BEIJING -- China's net worth reached $120 trillion in 2020 to overtake the U.S.'s $89 trillion as a red-hot real estate market drove up property value, according to a report by McKinsey Global Institute.

In America, estimates say that Chinese suppliers make up 70-80 percent of Walmart's merchandise, leaving less than 20 percent for American-made products. Walmart's financial records show it collected $3.9 trillion in net sales between 2005 and 2014.

China owns and controls almost 192,000 acres of farmland right here in the United States. To be clear, it's not a huge percentage of our total farm acreage by any stretch. According to the FDA, there are more than 35 million acres of farmland in the U.S. which are owned by foreign investors.

What would happen if we stopped importing from China? ›

There would certainly be shortages of the currently imported goods for some years, until such time as the necessary industrial plant can be built out in North America. This would likely take about five years, although shortages of the most necessary goods would abate more rapidly.

China's GDP should grow 5.7% per year through 2025 and then 4.7% annually until 2030, British consultancy Centre for Economics and Business Research (CEBR) forecasts. Its forecast says that China, now the world's second-largest economy, would overtake the No. 1-ranked U.S. economy by 2030.

The relationship is one of close economic ties (economic ties grew rapidly after 1980), as well as hegemonic rivalry in the Asia-Pacific. It has been described by world leaders and academics as the world's most important bilateral relationship of the 21st century. Chinese Embassy, Washington, D.C.

Foreign holders of United States treasury debt

Of the total 7.2 trillion held by foreign countries, Japan and Mainland China held the greatest portions, with China holding 870 billion U.S. dollars in U.S. securities. Other foreign holders included oil exporting countries and Caribbean banking centers.

China's gross domestic product will surpass that of the U.S. in about 2035, the Goldman group led by Kevin Daly and Tadas Gedminas wrote, while India's GDP will narrowly surpass the U.S.' in about 2075.

Not only does China supply a tremendous amount of our consumer and commercial goods, medical supplies, pharmaceuticals, and vital raw materials, but it also controls a huge share of the world's shipping fleet and commercial shipbuilding capabilities.

Although the pace of China's economic rise has slowed in recent years, it appears on track to end the United States' lengthy run as the world's largest economy by around 2035, according to the latest projection by economists at Goldman Sachs.

It supports US jobs.

While expanding foreign trade can disrupt US employment, trade with China also creates and supports a significant number of American jobs. Exports to China support nearly 900,000 US jobs, and Chinese companies invested in the United States employ over 160,000 workers.

What would happen if China stopped trading with the world? ›

Estimated economic losses if China trade is cut off

According to the estimates, a total of $2.61 trillion would evaporate -- an amount equal to 3% of the world's gross domestic product. China's GDP is 10 times larger than Russia's. China also boasts the world's largest total trade value.

The demand for Chinese products—tea, porcelain, silk, and nankeen (a coarse, strong cotton cloth)—continued after the Revolution. Having seen the British make great profits from the trade when the colonies were prevented from direct trade with China, Americans were eager to secure these profits for themselves.

A new study from Columbia Business School finds that the U.S.-China trade war has led to an increase in global trade, a diversified supply chain for the products targeted by the tariffs, and significant implications for the future of globalization.

Not only does China supply a tremendous amount of our consumer and commercial goods, medical supplies, pharmaceuticals, and vital raw materials, but it also controls a huge share of the world's shipping fleet and commercial shipbuilding capabilities.

The United States enjoys overwhelming advantages over China. The United States outweighs China in terms of gross domestic product (GDP), technology, and military spending. China's GDP is 15 percent of global GDP, compared to 24 percent of the United States.