Summary
The U.S. and China are changing their trade relations to be less dependent on each other due to national security concerns. China is building its own trading network and limiting purchases from the U.S., while the U.S. considers strengthening ties with other regions like Central America through agreements like CAFTA-DR.
Key Facts
- The U.S. and China are moving to reduce economic dependence on each other.
- China has increased controls on exporting certain materials, citing national security.
- President Trump is concerned with China's reduced purchases of American soybeans and energy.
- China is creating trade relationships with countries in Latin America and Africa by offering financing and buying raw materials.
- America holds significant consumer purchasing power, contributing to a large trade deficit.
- In 2019, part of China's trade with the U.S. was declared as a "people's war" by its official publication.
- The CAFTA-DR agreement could help the U.S. replace some imports from China with goods from Central America.
- There is potential for Latin American producers to take a larger share of U.S. imports currently supplied by China.
