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China is no longer America’s biggest trading partner – Times of India

Russia-Ukraine seems to have hastened the reconfiguring of global trade. Both India and China have benefited from trade sanctions imposed by the Western nations on Russia in the wake of its invasion of Ukraine. Russia has emerged as the biggest supplier of crude oil to India in the last many months. Similarly, China has also increased its import of Russian oil.
Addressing the plenary session of the Eastern Economic Forum in Vladivostok, President Vladimir Putin said on Tuesday that the bilateral trade between Russia and China may have already crossed over $200 billion this year.
As the relationship between China and Russia strengthens, the United States has also begun to reshape its global trade strategies. While the US and China were already embroiled in a trade dispute, the ongoing conflict in Ukraine involving Russia has added renewed momentum to the widely discussed decoupling of the world’s two largest economies.
The decoupling between the world’s two largest economies has resulted in China being replaced as the largest trading partner of the US. According to a Bloomberg report, Mexico has overtaken China as America’s biggest trading partner.
In July, America’s southern neighbor accounted for 15% of U.S. imports, surpassing China, which constituted 14.6% of imports, as per data analyzed by the report.
Chinese shipments in July hit their lowest point since the onset of the Covid pandemic, experiencing a 14.5% decline compared to the same month last year, according to data released by Beijing last month.
Furthermore, the findings indicate a 12.4% drop in imports, reflecting the challenges faced by the ruling Communist Party in recovering from the post-pandemic economic slowdown.
Meanwhile, foreign direct investment (FDI) in Mexico has surged by over 40% in the country this year, as US companies increasingly look to Mexico as an alternative to China, as reported by Bloomberg.
Recently, President Joe Biden and Congress implemented trade restrictions on Beijing, primarily aimed at safeguarding domestic microchip and tech-related manufacturing.
Further, Biden has called China a ‘ticking time bomb’ due to slowing momentum of its economy.
(With inputs from agencies)

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