The US and China’s interdependent industries: apparel, machinery and more

With Donald Trump's inauguration just days away, markets continue to digest the implications of potential US tariffs on China.

We charted the US sectors with the most exposure to Chinese imports, as well as the Chinese sectors most reliant on the US market – as delineated by the US harmonized tariff schedule (HTS).

Apparel figures strongly in our first chart – demonstrating how China is the dominant supplier of foreign-made goods at the American shopping mall. About 40% of US shoe imports come from China; for textiles, the equivalent figure is 25%. Meanwhile, the US accounts for 23% of China's shoe exports and 16% of its textile exports. The leather-goods category in both countries is also quite exposed to US-China trade.

The "miscellaneous" category also stands out; this includes goods such as toys and furniture. About 45% of US imports in this category come from China – a greater share than in any other sector.

China's "fats and oils" sector – which ranges from animal tallow to vegetable oil and other processed oils – is also quite reliant on the US market: almost 32% of that industry's exports go to America, though the US dependence on China is much less (7.8%).

When we measure these different sectors by the absolute value of bilateral trade, another industry jumps to prominence: machinery. Our second and third charts explore the composition of US imports and Chinese exports – not only by sector, but comparing the US-China trade relationship to other key trading blocs including the European Union, the NAFTA/USMCA partners of Canada and Mexico, and the ASEAN nations.

US machinery & appliance imports dwarf those in other sectors; of the USD 900 billion-plus of goods in this category that has made its way to America over the 12 months through November, about USD 205 billion came from China – just below the USD 230 billion from Canada and Mexico combined.

The machinery sector dominates Chinese exports by value, as well. The US, EU and ASEAN are roughly equally important markets. At about USD 1.5 trillion, this industry's exports are quintuple the value of the no. 2 category (textiles).

If you are a CEIC user, access the story here.