I previously have noted that—if you exclude processing imports—China’s imports of manufactures are low relative to its GDP. I suspect the interlinked “China, Inc” connections between Party and State (described well by Mark Wu) have something to do with this. Manufactured imports, net of processing imports (processing imports are re-exported), peaked as a share of China’s GDP back in 2003.
The other “trade” outlier among the world’s big economic blocks is the United States. U.S. imports of manufactures aren’t out of line with those of say the eurozone. Or for that matter with Japan, which imports a lot more manufactures now than it used too. The U.S. though does stand out for the low level of its manufactured exports.
I am using an imperfect proxy for U.S. manufactures here—the sum of capital goods, autos, and consumer goods in the end use data. That leaves out manufactured goods in industrial supplies (notably chemicals, which sort of blur the line between manufactures and commodities given that competitive advantage is often determined by proximity to a low cost supply of ethane and the like). Adding in chemicals and plastics though would not significantly alter the picture (and would make the data harder to replicate). I confess that I prioritized using easy to reproduce (and easy to update) data that tells the basic story over analytical perfection.
I also adjust the Chinese data by netting out processing imports from China’s exports in a way that I do not adjust the other countries data. Without that adjustment, China is on a different scale.
The result of this pattern of exports and imports is that the U.S. runs a sizable trade deficit in manufactures, while the other big integrated economic blocks run surpluses in manufactures.