The ongoing trade conflict between the United States and China, which erupted in 2018, is affecting China’s trading patterns. The persistence of tariffs has contributed to changes in China’s trade structure, with Chinese firms strategically realigning their trade partners and products to mitigate the negative effects. This note analyzes China’s trading patterns of recent years. The findings suggest that both China’s major trade partners and traded goods have been changing and may be attributable in part to “political distance.” Policy implications are also discussed.
Analytical Notes