Today, the global economy is struggling to move forward in the shadow of the epidemic, and China's manufacturing industry is also not spared. After three consecutive months of decline in foreign trade, China's manufacturing economy has embarked on a slowdown and become an important constraint to economic recovery. China's once-proud position as the world's commodity center is no longer secure, and China has had to compromise and be given a trail to the United States and other countries.
The glory of the past has become a memory. Under the influence of the global epidemic, China's exports have gradually declined, and with July this year, the total value of exports fell by a staggering 9.2%, while import trade also suffered a decline of 6.9%, and the trade surplus narrowed sharply, falling by as much as 14%. Worryingly, this downward trend began in May this year, has been going on for three months, and the decline seems to be gradually expanding. The main reason for this is the rapid rise of manufacturing in Southeast Asia, which poses a serious challenge to China's commodity exports.
In addition, China's conservative foreign trade policy implemented during the epidemic period continues to exert its influence. International orders have been lost, China's foreign trade industry is in jeopardy, and even the United States has lost this important trading partner. All this has led to China's precarious position in trade with the United States.
China used to be America's main trading partner, but that has changed dramatically. In the first seven months of this year, Sino-US trade volume was only 2.64 trillion yuan, a staggering 10% year-on-year decline. Even considering the impact of the pandemic, which has disrupted global logistics, the magnitude of this decline is truly surprising.
The reasons for such dramatic changes are manifold. The security risks of China's trade with the United States have always existed, and the United States has gradually reduced its share of trade with the United States by printing money and raising interest rates and implementing high tariff policies. The United States, on the other hand, has sought to reduce its dependence on Chinese goods and seek alternative trading partners to maintain the stability of its commodity supply network.
The decline of the commodity economy in the European and American markets is also one of the factors leading to the decline in Sino-US trade volume. Although the dollar is still a circulating currency, the frequent use of the dollar by the United States for economic crisis transfer has aroused the resentment of Western countries, and the international status of the dollar has gradually weakened.
Among China's competitors, Canada and Mexico have emerged to replace China's position in the U.S. goods market. In the first five months of this year, the United States imported a total of $168.6 billion from China, while Canada and Mexico imported $175 billion and $195 billion, respectively. With their policy advantages and convenient transportation conditions, these two countries have gradually become the preferred trading partners of the United States.
However, it is worth noting that Mexico and Canada have relatively limited industrial development and cannot provide a complete commodity chain. Despite the support of US capital, it is still difficult to completely replace China. Moreover, with the investment and development of Western countries in Southeast Asia and other places, the competition will be more fierce in the future.
In summary, under the policy adjustment of the United States after the epidemic, China's position has gradually declined in the global trade pattern. The rise of countries such as Mexico and Canada will not only fill the void left by China, but will also compete with China for the prospect of trade. Faced with this situation, China needs to accelerate industrial upgrading to maintain its competitiveness. Looking back at China's former status as an importer of American goods, perhaps we should think about how to stand in the fierce competition and meet greater challenges.