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Chinese Electronics Such as Phones Drive US Trade Deficit, US-China Commission Reports

A “massive influx” of Chinese-sourced computers and electronics to the U.S. has been the “primary driver of the bilateral trade deficit” between those countries, the U.S-China Economic and Security Review Commission reported Thursday. U.S. imports of Chinese computer and electronics…

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products jumped 458 percent to $184 billion in 2017 from 2002, “by far” the largest category of Chinese shipments last year, comprising 37 percent of total imports, said the commission, created in 2000 by Congress and whose 12 commissioners are picked by legislative leaders. “Low labor costs, a central position in East Asia, and preferential policies in China’s special economic zones caused a structural readjustment of global supply chains and enabled China to become the world’s hub for the production of laptops, phones, and data storage devices.”