manufacturing
China's Economic Slowdown: Which U.S. Industries Face the Heat?
Adriana Pulley · September 20, 2023 · 1 min read
One pressing question looms in a world where economies are hyper-interconnected: How does China's economic slowdown impact U.S. manufacturing? Supply chain professor Jason Miller breaks it down.
Chart 1: Top 10 Export Industries to China (2021)
Semiconductors, industrial machinery, and motor vehicle assembly take the lead.
Meatpacking, aerospace products, resins, and synthetic rubber follow suit.
Note: Some electronics might end up in goods exported back to the USA or Europe.
Chart 2: Most Exposed Industries to China Slowdown
Pulp mills (think paper production) take the top spot, with exports to China accounting for 24% of shipments.
Industrial machinery stands at 18% exposure.
China's slowdown explains the drop in pulp production and industrial machinery output.
Crunching the Numbers
In 2021, U.S. exports to China reached $86.6 billion.
Total domestic shipments from manufacturing plants? $6.08 trillion.
This ratio? Just 1.4%.
Implication: Some industries will feel China's slowdown more than others.
Major Industries Affected
So pulp mills and industrial machinery face major challenges. Additionally, the chemical manufacturing sector feels the heat. Still, most U.S. manufacturers are largely unaffected by China's economic issues.
#MintPlainFacts | It is often said that when China sneezes, the world catches a cold. But the reality is that some countries are more at risk from a slowdown in China.
Read here: https://t.co/ituHqYzl98 pic.twitter.com/eudSxazsgk— Mint (@livemint) September 20, 2023
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