Graphic Truth: The US trade deficit with China, from zero to now

US-China trade from 1985-2024
Luisa Vieira

Hard as it is to imagine amid the harrowing US-China trade war these days, there was a time when the two countries hardly did any business with each other.

That time was about 40 years ago, in the mid-1980s.

In those days, China had just barely begun the sweeping economic reforms that would turn a country wrecked by Mao Zedong’s Cultural Revolution into a new “workshop of the world.” By churning out exports of everything from sneakers and sofas to smartphones and solar panels, China carved out a crucial role in the global economy.

A major moment in China’s trade growth came in the early 2000s when, over objections from US labor unions and industry groups worried about the impact of cheaper Chinese labor on American jobs, the US opened the way for China to join the World Trade Organization.

After that, China became one of the top three US trade partners, a place it has held ever since — occasionally beating out Canada and Mexico for the top spot. The US trade deficit with China — nearly $300 billion last year — is the largest in the world.

Since President Donald Trump’s first term, the US has hit China with tariffs in an effort to rebalance the trade relationship and “decouple” sensitive American industries from a country that most people in Washington now view as a rival.

These efforts have intensified in the early months of Trump’s second term, and the two countries have now imposed triple digit tariffs on each other.

Here’s a look back at how US-China commercial ties grew from nearly nothing into the largest, and now most contentious, trade relationship in the world.

More from GZERO Media

- YouTube

As the Israel-Iran war intensifies, Iran is seeking an urgent ceasefire, facing overwhelming Israeli military air superiority. "They have virtually no capacity to strike back,” says Ian Bremmer in today’s Quick Take.

Memorial outside the Minnesota State Capitol in honor of Democratic state assemblywoman Melissa Hortman and her husband Mark, after a gunman killed them, in St. Paul, Minnesota, U.S., June 15, 2025.
REUTERS/Tim Evans

Minnesota’s massive manhunt ended Sunday with the arrest of 57-year-old Vance Boelter, accused of killing State Rep. Melissa Hortman and her husband, and injuring State Sen. John Hoffman and his wife.

Emergency personnel work at an impact site following a missile attack from Iran on Israel, in Tel Aviv, Israel, on June 16, 2025.
REUTERS/Ronen Zvulun

The war between Israel and Iran continued to escalate over the weekend, creating a dilemma for US President Donald Trump.

U.S. President Donald Trump arrives to attend the G7 Leaders' Summit at the Rocky Mountain resort town of Kananaskis, Alberta, Canada, June 15, 2025.
REUTERS/Chris Helgren/Pool

The G7 is no longer setting the table; it’s struggling to hold the cutlery. Once a pillar of the post-war world order, the group today is splitbetween the US and the rest, casting about for common ground.

- YouTube

Tensions in the Middle East escalate as Israel launches a surprise military strike against Iran, prompting international concern and speculation about broader conflict. In his latest Quick Take, Ian Bremmer calls Israel’s strike on Iran “a huge success for the Israelis” and a significant blow to Iran’s regional influence.