From A.I. to inflation, 11 business charts that explain 2023

U.S. and China remained deeply entwined

Tensions between the United States and China seem to have stabilized after President Biden’s meeting with President Xi Jinping of China on the sidelines of the Asia-Pacific Economic Cooperation summit in November.

Economic ties remain strong, and new research shows how difficult it is to unwind them. Tariffs imposed by the Trump administration and other trade restrictions have caused China’s share of exports to the United States to fall in recent years, while countries like Mexico and Vietnam have gained ground.

But those countries import intermediate goods from China, meaning American supply chains remain reliant on Chinese production. In fact, China is now the dominant supplier of industrial inputs, according to calculations in one recent paper.