Morgan Stanley| Asia Macro team notes that after the onset of trade tensions with China in 2018 while offshoring has been very limited, trade flows are much more diversified than before. The US now imports much less from China (13.9% vs 21.6% in Dec 17), clearly expanding the number of regions from which it does so: it imports more from Canada, Taiwan, Korea and India … with Mexico and the Eurozone as its main suppliers.
As for China, although it has also lost relative importance in US foreign trade, this reduction has been compensated thanks to the sale of new products to new geographical areas, which in fact has produced a net improvement in its global share (from 12.9% to 14.4%).
