What would happen to the American people and Businesses if China all of a sudden didn’t exist anymore?

Question

I’m totally aware that we depend on import goods from China for most of our materialistic needs, but my question is how well would we get along if the plug was pulled on us.

Answer 1

Clothing, toys, and electronics prices would go up (more in the short run than in the long run; eventually, new production lines would be deployed in India, Indonesia, Vietnam, etc., to replace the capacity lost in China). All in all, affected goods would account for about 2% of U.S. GDP.

Interest rates would definitely go up, as there would be no Bank of China willing to hold hundreds of billions of dollars worth of U.S. Treasury securities. Holders of adjustable rate mortgages would immediately feel the pinch.

Exports to China would no longer exist, which woud result in GDP loss (and potentiually unemployment increase) of about 0.4%.

Another round of complications would occur when Japan, which is the largest exporter into China, would face the same problems and cut their imports from everywhere, including the U.S.

Answer 2

We would not get along well at all. Other countries aren't as interested in our goods as much as the far East. On the other hand, China needs us as much as we need them.

Answer 3

us does not import goods from china. us companies have their goods produced in china. so there is a big difference. the two countries benefit each other.

if one ceases to exist, the other cannot survive either

Answer 4

It wouldn't matter. For something big enough to take out about 1.6 billion people, the US is surely not to exist anymore either.