China's Economic Slowdown: Which U.S. Industries Face the Heat?

One pressing question looms in a world where economies are hyper-interconnected: How does China's economic slowdown impact U.S. manufacturing? Supply chain professor Jason Miller breaks it down.

Chart 1: Top 10 Export Industries to China (2021)

• Semiconductors, industrial machinery, and motor vehicle assembly take the lead.

• Meatpacking, aerospace products, resins, and synthetic rubber follow suit.

• Note: Some electronics might end up in goods exported back to the USA or Europe.

Chart 2: Most Exposed Industries to China Slowdown

• Pulp mills (think paper production) take the top spot, with exports to China accounting for 24% of shipments.

• Industrial machinery stands at 18% exposure.

• China's slowdown explains the drop in pulp production and industrial machinery output.

Crunching the Numbers

• In 2021, U.S. exports to China reached $86.6 billion.

• Total domestic shipments from manufacturing plants? $6.08 trillion.

• This ratio? Just 1.4%.

• Implication: Some industries will feel China's slowdown more than others.

Major Industries Affected

So pulp mills and industrial machinery face major challenges. Additionally, the chemical manufacturing sector feels the heat. Still, most U.S. manufacturers are largely unaffected by China's economic issues.