China remains embedded in US supply chains even as American firms have taken steps to reduce direct imports from the Asian country, according to a paper presented at the Federal Reserve Bank of Kansas City’s annual Jackson Hole conference Saturday.
The paper’s authors, Laura Alfaro of Harvard Business School and Davin Chor of Dartmouth College’s Tuck School of Business, documented a decrease in the share of US imports from China and a corresponding increase in the share of US imports from Vietnam and Mexico between 2017 and 2022.
The shift was spurred by US government policies including tariffs, which were aimed at decoupling the American and Chinese economies.But Chinese firms appear to be finding ways to mitigate the impact, namely through increased exports to and foreign direct investment in Vietnam and Mexico. “The US’ indirect supply-chain links to China remain intact; along some dimensions — through China’s economic ties with Vietnam and Mexico — these indirect links have even been intensifying,” Alfaro and Chor wrote.
“Even though the US may be reallocating its sourcing and imports toward Vietnam and Mexico, it may de facto remain connected with and dependent on China through third-countries, including through Vietnam and Mexico.”
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed Chair Powell at Jackson Hole: What investors need to knowFed Chair Jerome Powell is scheduled to speak at the Jackson Hole Economic Symposium tomorrow. Jeanna Smialek, New York Times Federal Reserve and Economy Reporter, joins Yahoo Finance Live from Jackson Hole, Wyoming, to discuss what to expect from Powell's speech and everything investors need to know. Regarding inflation, Smialek said, 'We've got pretty sticky core inflation, that number is quite a bit higher, almost 5 percent still ... I think the Fed has to both signal that they're willing to do what it takes ... while also avoiding signaling that they're going to do so much that they're going to push the economy into recession.'
Read more »
Fed Latest: Central Bankers Gather for Jackson Hole ConferenceCentral bankers from around the world are gathering in Jackson Hole, Wyoming, for the Federal Reserve Bank of Kansas City’s annual two-day gathering. Before the meeting officially gets underway Thursday evening, officials including Philadelphia Fed President Patrick Harker and his Boston Fed counterpart, Susan Collins, will comment ahead of Chair Jerome Powell’s opening speech Friday.
Read more »
Gold, silver steady-weaker as Powell Jackson Hole speech awaited(Kitco News) - Gold and silver prices are steady to slightly lower in quieter midday U.S. trading Thursday, as traders are awaiting the marketplace event of the week, if not the month: the annual Federal Reserve symposium held in Jackson Hole, Wyoming.
Read more »
Bond Traders Are Obsessing Over This Gauge Before Jackson HoleAn abstract interest-rate metric is dominating discussions across trading desks ahead of the Jackson Hole symposium, with investors wondering if Federal Reserve Chair Jerome Powell will weigh in, and bracing for further declines in US Treasuries if he does.
Read more »
Signs of 'soft landing' emerge in Jackson Hole as U.S. Fed meets with world watchingEven as they cool the economy, the U.S. Federal Reserve policymakers hope to avoid tipping it into a recession — a notoriously difficult achievement that economists call a 'soft landing.'
Read more »
Analysis-US Treasury yield curve shifts could be set-up for Jackson Hole unwindBy Davide Barbuscia and Carolina Mandl NEW YORK (Reuters) - Recent shifts in the U.S. Treasury yield curve may indicate that market optimism around ...
Read more »