A report at the Federal Reserve Bank of Kansas City’s annual Jackson Hole conference revealed that China remained in US supply chains despite efforts to decrease direct imports.

Between 2017 and 2022, US imports from China decreased, while imports from Vietnam and Mexico increased.

However, Chinese enterprises are increasing exports and foreign direct investment in these countries to counteract the damage.

The US’ indirect supply-chain links to China remain intact, intensifying through China’s economic ties with Vietnam and Mexico.