Capitol Report Why the U.S.-China trade deficit is so huge: Here's all the stuff America imports Published: June 27, 2019 at 11:10 a.m. ET By Jeffry Bartash The highs (few) and lows (many) of U.S. trading with China U.S. and China trade standoff: What's at stake 2. Notice that the US both imports and exports U.S. imported record $539 billion in goods from China in 2018, in billions computers and electronics. How is that possible? Computers & electronics $186.5 Electrical equipment $49.9 https://www.marketwatch.com/story/heres-all-the-stuff-the- Miscellaneous manufacturing $44 us-imports-from-china-thats-causing-a huge-trade-deficit- Machinery $38.7 2018-03- Clothing $29.8 Fabricated metal $26.5 Furniture $25.8 Transportation equipment $21.7 Chemicals $21.4 Plastic & rubber products $20.2 Leather and similar goods $20 U.S. exported $120.3 billion in goods to China In 2018, in billions Transportation equipment $27.8 Computers & electronics $17.9 Chemicals $16.2 Machinery $11.1 Oil & gas $7.1 Farm crops $5.9 Miscellanous manufacturing $3.7 Waste & scrap $3.5 Electrical equipment $3.4 Source U.S. Census 23#::text=The%20U.S.%20imported%20a%20record.The%20one%20major%20exception%3A%20agriculture. 2020-7-2 Import Capital goods wholem an industrial supplies except petroleum The US and World trade Other goods The Service component consists mainly of tourism and services provided by banks and customers in other countries (such as taking deposits, making loans, and providing financial advice) Exports Capital goods, The US mainly exports Food and goods, except automotive. The U.S. has a low opportunity cost of growing grains because of our vast land and farm machinery resources- Automotive China's farmland is frequently in very small plots, which hicles, engines and parts industrial supplies makes large machinery unusable. Our technology and and materials except petroleum industry also make us a low-cost producer of many capital Consumer goods, automobiles goods, such as commercial passenger jets. Food, feeds, and Other goods beverage 3. (6). What types of goods does the US mainly import, and why? Services 4. (6) Would you expect these percentages to remain constant over time? 5. (20) Fill in the column marked Table 2 1996 U.S. Merchandise Trade: Major Trading Partners Total Trade on Table 2 - list them by country. Use your figures to identify the top Exports Imports Total Trade five trading partners in 1996 All Countries $612,069 million $803,239 million $1,415,308 million Africa 8 10,636 million 18,940 million Australia 11,705 3,869 6. (3) Why was our trade greatest Belgium/Luxembourg with these countries? 12,685 9,199 Brazil 12.347 8,773 7. (3) Why was the volume of Canada 134.609 158,640 trade with Eastern Europe and China 11.938 51.511 Africa so low, given the size of Eastern Europe 7,359 7.003 these areas? France 14,454 18,630 Germany 22,970 38,38 8. (6) Speculate about what Hong Kong 13,873 9,854 might happen to US exports Italy 8,621 18.294 and imports if the following Japan 65,954 115,167 hypothetical events were to occur. Korea, Republic of 25.653 22.611 A. A recession strikes the Mexico 56.735 75,108 European Union (EU), greatly Netherlands 16,501 7 473 reducing these countries capacities OPEC (Asia) 13,856 21,011 to purchase goods and services. Singapore 16,253 20,338 Taiwan 17,540 29,902 B. The developing countries of UK 30.246 28,832 Africa begin to experience rapid Venezuela 4.665 13,171 economic growth, thereby raising the incomes of their citizens. All values are in millions of U.S. dollars, C. China reduces more restrictions Source: Survey of Current Business, Table 2, January 1998 on trading with western economies

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