All along, the United States, which has been leveraging its advantageous position of the US dollar for global large-scale purchases, has finally reached a point where it can no longer buy as much as it used to.

The General Administration of Customs of our country has released the latest trade data, and China's import and export have once again increased year-on-year, indicating that our country's trade performance remains very excellent.

However, at the same time, the United States' import volume from our country has shown a significant contraction, while our imports from the United States have increased.

Even so, our trade surplus has still expanded significantly.

01, Reduction in US Imports

The General Administration of Customs has announced the trade data for May.

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In the first five months of this year, our country's foreign exports have generally increased by 8.1%, and trade remains one of the important drivers among the three major engines, given that domestic demand has not yet fully recovered.

What may be of greatest interest to everyone is the trade situation between China and the United States, where the United States' trade ranking is now behind the European Union and ASEAN.

In the first five months of this year, the total trade volume between China and the United States has decreased by 5.5%, with the main decline coming from exports, which have significantly decreased by 8.5%.

On the contrary, imports have increased, with imports up by 3.9%.The reason it's hard to imagine is that the continuous appreciation of the US dollar should strengthen its purchasing power, yet imports continue to shrink. This is related to high inflation in the United States, where prices keep rising, leading to a decrease in the actual purchasing power of Americans. From a national perspective, the US is also unable to purchase as much as before. In the past, the US continuously bought globally, first using dollars to purchase goods from other countries, then selling US debt to these countries to bring dollars back in. With these dollars, they could once again buy globally. However, in the past two years, various countries have been selling US debt and reducing their allocation of US debt, weakening the US's actual purchasing power, which is essentially based on issuing US debt to buy goods from other countries.

On the other hand, this is also related to US trade policies. The US has imposed high tariffs on Chinese imports, and at the same time, intentionally shifted many orders to Southeast Asia and Mexico. But for us, this is not important. Because in the past, many of the goods we exported were labor-intensive with low added value and low profits, resulting in very low income for workers in our manufacturing industry. Now our export product structure is being adjusted, and this change can also be seen in our trade data, with the export of mechanical and electrical products continuously increasing and corresponding imports continuously decreasing.In addition, the export of automobiles is also continuously increasing, especially new energy vehicles, which have become the world's main exporter.

These all belong to high-end manufacturing, which is obviously more in line with the future development direction of our country's Industry 4.0 compared to the previous luggage, shoes, and hats.

03, Trade Surplus

In fact, the United States cannot buy, which ultimately indicates that the status of the dollar is no longer high.

Our main trade partners have now become ASEAN, the European Union, and the Belt and Road countries.

In the first five months of this year, our country's trade surplus has further expanded, and the current annual cumulative amount has reached 359.4 billion US dollars, which is a significant increase of nearly 28% compared with the same period last year.

The main contribution is the export to ASEAN and European Union countries.

Trade with the European Union can use the euro, as well as the renminbi, and ASEAN has also stated many times that in future trade, it will de-dollarize and use more renminbi.

Therefore, trade with these two trade partners will further enhance the status of the renminbi.