China is no longer dependent on the United States to drive growth.
Since Trump’s first trade war China saw the writing on the wall, and the subsequent Biden regime’s blocking of Chinese EV and solar imports just confirmed their fears, so they started to reduce exposure to the US consumer market. In 2018 exports to the US accounted for 3.5% of China’s GDP but by 2023 this was less than 2.9% of GDP.
According to the Rodium Group, since 2018 Chinese investment in the US has fallen by over 95%, from $46 billion to just $2.3 billion.
See Sean Foo’s excellent VIDEO explanation of why China is not affraid of US tariffs.
Sources:
- Caixa Bank Research, Dec 13, 2024. https://www.caixabankresearch.com/…/exposure-chinese…
- Sean Foo, April 4, 2025. https://youtu.be/hwIhl2jYkA4
China Environment News 