As the Sino-US trade conflict intensified after 2018, China’s trade with the G3 countries declined. However, it remains high in absolute terms: trade with China by the US, Europe and Japan – as a share of the G3’s total trade – has held steady. Such a high degree of economic interdependence suggests that severing ties would be very disruptive economically and politically. Nevertheless, as external restrictions grow, China can be expected to feel increasingly compelled to drive economic growth from within.
