United States (USA) and China (CHN) Trade | The Observatory of Economic Complexity (2024)

FAQs

United States (USA) and China (CHN) Trade | The Observatory of Economic Complexity? ›

Comparison In 2022, United States ranked 10 in the Economic Complexity Index (ECI 1.47), and 2 in total exports ($1.95T). That same year, China ranked 22 in the Economic Complexity Index (ECI 1.12), and 1 in total exports ($3.73T).

The Observatory of Economic Complexity is a tool that allows users to quickly compose a visual narrative about countries and the products they exchange. Each of the different visualizations allow for different views of the same data.

The Observatory of Economic Complexity (OEC) is the world's leading data visualization tool for international trade data. The OEC makes more than 50 years of international trade data available through dozens of millions of interactive visualizations.

Economic Complexity Ranking

During the last 20 years China's⁩ ⁨economy has become relatively more complex, moving from the ⁩⁨51st to the 22nd⁩ position in the ECI rank. These economic complexity rankings use 6 digit exports classified according to the HS96 classification.

Exports to China support over 1 million US jobs, and Chinese companies invested in the United States employ over 160,000 workers. It helps US companies compete globally. In addition to exporting goods to China, US companies do a significant amount of business on the ground there.

The OEC is currently designed and developed by Datawheel, but it began as a research project at MIT's Collective Learning group (former Macro Connections Group).

The Economics Observatory (ECO) is a new project that bridges the gap between academic research, government policy and the general public. Our goal is to provide balanced and reliable answers to questions about the economy. We make it our mission to make these answers as accessible and engaging as possible.

ECI Trade. This is the traditional economic complexity index. It is based on the geography of trade and captures the sophistication of a country's exports. Trade ECI estimates a country's ability to produce and export complex products that require a high level of knowledge and skills.

Economic Complexity Index (ECI) + A rank of countries based on how diversified and complex their export basket is. Countries that are home to a great diversity of productive know-how, particularly complex specialized know-how, are able to produce a great diversity of sophisticated products.

Higher economic complexity as compared to country's income level drives economic development.

Which country has the highest economic complexity? ›

Economic Complexity In 2022, the world most complex economies were Chinese Taipei (2.19), Japan (2.17), Switzerland (2.02), South Korea (1.9), and Germany (1.8). In contrast, the world least complex economies were Democratic Republic of the Congo (-1.8), Liberia (-1.88), Chad (-2.04), Mali (-2.21), and Guinea (-2.29).

It is now unclear whether China's GDP will ever surpass the U.S. and nations around the world are rethinking their ties to Beijing and the debt trap that is the Belt and Road Initiative. Meanwhile, China's population growth is done. Chinese entrepreneurs are leaving the country. Optimism is dimming among Chinese youth.

China is in the midst of a profound economic crisis. Growth rates are flagging as an unsustainable mountain of debt piles up; China's debt-to-GDP ratio reached a record 288% in 2023.

China Trade & Investment Summary

Exports were $195.5 billion; imports were $562.9 billion. The U.S. goods and services trade deficit with China was $367.4 billion in 2022. U.S. goods exports to China in 2022 were $154.0 billion, up 1.7 percent ($2.6 billion) from 2021 and up 39 percent from 2012.

The costs to the U.S. economy if we were to prohibit domestic companies (impacting companies such as GE, Honeywell, Collins, and Parker Aerospace) from engaging with COMAC would be significant: The U.S. Chamber of Commerce estimates that losing access to China's aviation market would translate into a loss of $38 ...

United States is a sophisticated and highly diversified economy that is based on services, finance, and consumption from the middle class. China has similar aspirations in the future, but right now it is resource-intensive growth engine making the transition from a manufacturing hub to a consumer-driven economy.

An observatory is a location used for observing terrestrial, marine, or celestial events. Astronomy, climatology/meteorology, geophysics, oceanography and volcanology are examples of disciplines for which observatories have been constructed.

OEC is a privately held company, a wholly owned subsidiary of Novonor, which provides services in the heavy civil construction and industrial construction, assembly and maintenance segments. The company, based in Brazil, primarily serves four markets: Brazil, Angola, Peru and the United States.

The Observatory of Economic Complexity, created by Alexander Simoes at Massachusetts Institute of Technology (MIT), ranks countries based on the amount of useful knowledge embedded in it. The ranking is based on the idea that a country's economy grows as the complexity and specialization of its products increases.