What percentage of products sold in the USA 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.
China produces 28% of the world's manufacturing output.
U.S. goods imports from China totaled $434.7 billion in 2020, down 3.6 percent ($16.0 billion) from 2019, but up 19 percent from 2010. U.S. imports from are up 325 percent from 2001 (pre-WTO accession). U.S. imports from China account for 18.6 percent of overall U.S. imports in 2020.
Ignoring this flaw, the US topped all countries, receiving one-sixth of Chinese exports. Imports were $2.69 trillion, yielding the largest goods trade surplus in world history at $677 billion, or about 3.8 percent of Chinese GDP.
Manufacturers in the United States account for 11.39% of the total output in the economy, employing 8.51% of the workforce.
- L.L.Bean. ...
- Levi Strauss & Co. ...
- New Balance. ...
- Radio Flyer. ...
- Melissa & Doug Toys. ...
- Brach's Confections, Inc. ...
- US Major League Baseballs. ...
- Chevy Silverado.
China is the United States' largest trading partner. Companies import goods from China in part because their lower cost allows higher retail markups. That means more of what consumers spend goes to those companies and, indirectly, their workers.
- Medical Products Manufacturers. Medical products manufacturers continue to have their products made in China in order to reduce costs. ...
- Electronics Industry. ...
- Plastic Product Manufacturing. ...
- Clothing & Textiles.
In addition to its low labor costs, China has become known as "the world's factory" because of its strong business ecosystem, lack of regulatory compliance, low taxes and duties, and competitive currency practices.
China was the top supplier of goods to the United States, accounting for 16.5 percent of total goods imports. The top five suppliers of U.S. goods imports in 2022 were: China ($536.3 billion), Mexico ($454.8 billion), Canada ($436.6 billion), Japan ($148.1 billion), and Germany ($146.6 billion).
Does China rely on the US?
China has shifted purchases away from the United States to reduce its reliance on US suppliers, but US farmers remain highly dependent on the Chinese market. In 2022, around 19 percent of US agriculture exports went to China, up from 14 percent in 2017 and 13 percent in 2009.
Comparatively, only 57% of independents favored American-made products, though they also responded least favorably to Chinese-made products at 22%. One other interesting point to come out of the survey: close to 50% of consumers said they would actually be willing to pay more for American-made products.
One way or another, our economy would shrink. By how much is hard to say. If 40% of our imports from China disappeared, then 1.26% of GDP would disappear: Imports are approximately 15% of U.S. consumption, and China's share of that is about 21%, so our imports from China represent 3.15% of GDP.
| China Exports to United States | Value | Year |
|---|---|---|
| Machinery, nuclear reactors, boilers | $109.64B | 2022 |
| Toys, games, sports requisites | $36.96B | 2022 |
| Furniture, lighting signs, prefabricated buildings | $34.54B | 2022 |
| Plastics | $27.37B | 2022 |
Destinations In May 2023, China exported mostly to United States ($42.5B), Hong Kong ($20.4B), Japan ($12.5B), South Korea ($12.3B), and Vietnam ($11.1B), and imported mostly from Taiwan ($15.1B), United States ($14.3B), Australia ($13.6B), South Korea ($12.8B), and Brazil ($12.5B).
According to data published by the United Nations Statistics Division, China accounted for 28.7 percent of global manufacturing output in 2019. That puts the country more than 10 percentage points ahead of the United States, which used to have the world's largest manufacturing sector until China overtook it in 2010.
In 2021, Manufacturing contributed $2.3 trillion to U.S. GDP amounting to 12.0 % of total U.S. GDP.
But beginning in the late 1990s, American manufacturing saw a steady decline. Over the course of several decades, many U.S. companies moved thousands of their factories, and the jobs they provided, to other countries where the cost of labor is less, such as China and Mexico.
Despite the rapid growth, less than 1 percent of the U.S. food supply comes from China. For a few specific items, like apple juice, garlic, canned mandarin oranges, fish, and shrimp, China is a major supplier.
According to data from the Bureau of Economic Analysis , total US goods and services imports from China in 2022 were $564 billion; in 2018 they were only $558 billion. Total US goods imports alone from China in 2022 ($537 billion) remained slightly below 2018 levels ($539 billion) according to data from Census .
How much does the US owe China?
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.
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.
How many US companies operate in China? It is estimated that there are over 50,000 US companies that have operations in China.
As previously mentioned, 80% of the 75 million products imported by Walmart are from China, so one would think that they would have suffered at least a little with the rest of U.S. importers with the same sourcing.
By mid-2022, according to the U.S. Department of Agriculture, China will hold 69% of the world's corn reserves, 60% of its rice and 51% of its wheat. By China's own estimation, these reserves are at a “historically high level” and are contributing to higher global food prices.
Household-name consumer brands like Starbucks, Nike and Under Armour have a large customer base in China. Tech and automobile giants like Intel, Apple (AAPL), Tesla (TSLA), General Motors and Ford not only rely on Chinese consumers, but also have huge manufacturing networks in the country.
Minimum Wages in China is expected to reach 2590.00 CNY/Month by the end of 2023, according to Trading Economics global macro models and analysts expectations. In the long-term, the China Minimum Monthly Wages is projected to trend around 2650.00 CNY/Month in 2024, according to our econometric models.
Consumers always wonder why everything in American stores seems to be made in China, and that's because it's cheaper. Profit is why companies exist, so finding the best deal was the best way to cut margins. Usually, that meant China.
Therefore, by law, a product that is “Made in China” will be labeled as such. This is important because import tariff rates are calculated in accordance with the country of origin for each product. It is essential to CBP rulings that the correct country of origin is indicated.
That happens because of a combination of economics and chemistry. The economics are simple: overseas oil, even after shipping costs, is often cheaper than domestically-produced crude. And, while the U.S. does produce enough oil to meet its own needs, it is the wrong type of oil.
What is the US #1 import?
The United States is the world's second-biggest importer. In 2022, the main imports were consumer goods (27 percent), capital goods (26 percent), and industrial supplies (25 percent) followed by automotive vehicles, parts and engines (12 percent), and foods, feeds and beverages (6 percent).
- Gasoline and Other Fuels.
- Crude Petroleum.
- Liquified Natural Gas (LNG) and Other Natural Gases.
- Civilian Aircraft Parts.
- Passenger Vehicles.
Rajah last year projected that while China would become the world's biggest economy by 2030, “its size advantage over America would be slim and it would remain far less prosperous and productive per person than the United States and other rich countries, even by mid-century.” The Japan Center for Economic Research, ...
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 over 1 million US jobs, and Chinese companies invested in the United States employ over 160,000 workers. It helps US companies compete globally.
According to the National Science Foundation China has overtaken the U.S. in scientific patents and published reports. The Australian Strategic Policy Institute recently declared that China is ahead of America in 37 of 44 areas of technology.
Even better, buying from U.S. companies guarantees that products come from manufacturers that follow American labor laws and manufacturing requirements. If those perks aren't enough, buying domestic products is an eco-conscious choice. Purchasing domestically helps lower emissions and reduce carbon footprints.
It's almost certain that you're going to spend more money to manufacture your product in the U.S. The main reason of course, is labor; that's because, as it has been well-documented, labor costs in countries like China, Mexico, and others are a fraction of those in the U.S.
In fact, recent research reveals consumers are willing to pay up to 20% more for goods made in the USA. This is true for consumer goods as well as business-to-business and industrial purchases. In addition, many people feel that “buying American” is more patriotic and that USA-made goods are of higher quality.
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.
United States Imports from China of Toilet Paper, Towels, Similar Household, Sanitary Articles, of Paper was US$843.7 Million during 2022, according to the United Nations COMTRADE database on international trade.
Why does the US buy everything from China?
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.
In 2021, a remote coal town in northeastern China was forced to undergo an unprecedented financial restructuring.
U.S. goods imports from China totaled $539.5 billion in 2018, up 6.7% ($34.0 billion) from 2017, and up 59.7% from 2008. U.S. imports from are up 427% from 2001 (pre-WTO accession). U.S. imports from China account for 21.2% of overall U.S. imports in 2018.
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.
Driven by industrial production and manufacturing exports, China's GDP is actually now the largest in terms of purchasing power parity (PPP) equivalence. Despite this growth, China's economy remains strictly controlled by its government where there are accusations of corruption, unfair dealings, and falsified data.
In 2022, the United States was the largest export destination for China. The value of China's exports to the United States exceeded 3.87 trillion yuan, an increase of about 4.2 percent from the previous year.
| Rank | Country / Territory | Total trade |
|---|---|---|
| - | ASEAN | 975.3 |
| - | European Union | 847.3 |
| 1 | United States | 759.4 |
| 2 | South Korea | 362.2 |
Overall, the vast majority of goods and services sold in the U.S. are made in the country, the San Francisco Fed's researchers found. Shoes and clothing are an exception, with nearly 36% of U.S. dollars spent on Chinese-made items, compared with 25% on U.S.-made products.
China has shifted purchases away from the United States to reduce its reliance on US suppliers, but US farmers remain highly dependent on the Chinese market. In 2022, around 19 percent of US agriculture exports went to China, up from 14 percent in 2017 and 13 percent in 2009.
The Bottom Line
However, the availability of cheap labor is just one of many factors that have kept the "Made in China" label on so many products purchased by consumers around the world. It will take more than low labor costs for emerging economies to set up a business ecosystem that can compete with China's.
What percentage of Amazon products are made in China?
It's estimated that as much as 75% of all new goods sold on Amazon come from China. And thanks to changes in U.S. Customs policy, any Chinese good priced as high as $799 on their website can enter the U.S. duty-free.
Although many products from the US are actually made in China, such as Coca-cola, General Motors, Apple products etc., there is still a big need for US goods exports to Mainland China.
- Smartphones ($50.2 billion)
- Automatic digital processing machines ($49.2 billion)
- Wheeled toys, inflatable balls, puzzles and scale models ($16.3 billion)
- Video game consoles and console parts ($10.2 billion)
Which countries hold the most US debt? Over the past 20 years, Japan and China have owned more US Treasurys than any other foreign nation. Between 2000 and 2022, Japan grew from owning $534 billion to just over $1 trillion, while China's ownership grew from $101 billion to $855 billion.
Other reasons include the cost of renting land, costs of third-party services such as delivery and transport, and the favourable tax rates. All of these combined, have made China a haven for cheap production and it's no surprise it has become the factory of the world!
The top US goods exports to China are oilseeds and grains, semiconductors and their componentry, oil and gas, and motor vehicles. Many states also generate substantial economic value from service exports like travel, education, and financial services.
How Many Chinese Amazon Sellers Are There? According to our last research (see our related article Amazon Third Party Seller Breakdown by Country) over 63% of third-party sellers are from either mainland China or Hong Kong. Sellers from the United States by comparison make up just 34.8% of all third-party sellers.
With 356 billion U.S. dollars in net sales, the United States were Amazon's biggest market in 2022.