Last year, trade between the United States and China reached a historic high despite deteriorating diplomatic relations.
In 2022, imports and exports between the two countries were $690.6bn (£572.6bn), according to official data.
In recent days, relations between the countries have reached a new low after a Chinese balloon crossed the United States. Beijing denies US allegations that it was used for espionage.
Since 2018, the world’s two largest economies have been engaged in a trade war.
Imports from China to the United States grew to $536.8 billion last year, as American consumers purchased more Chinese-made goods, such as toys and mobile phones. During the same time frame, US exports to China rose to $153.8 billion.
While a portion of the growth in commerce between the two countries can be attributed to the rising cost of living, the numbers also demonstrate how dependent the US and China remain on each other despite years of trade strife.
Deborah Elms, the founder of the Asian Trade Centre, told, “I believe this is a significant indicator of the difficulty of decoupling.”
“Even if governments, corporations, and consumers chose to separate, it would be impossible to produce things at prices that firms and customers are prepared to pay in a decoupled environment,” she added.
In 2018, the Trump administration initiated an intensification of trade restrictions against Beijing.
After decades of growing Chinese imports, President Trump imposed taxes on over $300 billion worth of Chinese goods. China retaliated by imposing import tariffs on roughly $100 billion worth of American goods.
The majority of these measures are still in place more than two years after Joe Biden took office as president.
US Secretary of State Antony Blinken was expected to visit China this month to improve relations.
On February 5 and 6, the senior American ambassador visited Beijing to discuss security, Taiwan, and Covid-19.
However, the journey was abruptly postponed following the discovery of a suspected Chinese surveillance balloon drifting across the United States.
China has maintained that the airship is civilian and reached the US by mistake due to force majeure.
Tuesday in his State of the Union speech, US President Joe Biden did not reference the Chinese balloon directly, but he did say that his administration will always support China’s sovereignty.
“I am committed to cooperating with China to advance American interests and benefit the global community. As we made clear last week, if China’s actions undermine our sovereignty, we will act to safeguard our nation. And we did, “he added.
