A significant shift in U.S. trade policy in 2016, which raised the tax-free threshold for imported goods to $800, greatly facilitated the influx of Chinese products into the American market via e-commerce platforms like Shein and Amazon. This policy change allowed Chinese manufacturers to bypass tariffs, leading to a surge in exports and creating millions of jobs in China. However, the recent imposition of tariffs on packages from China, regardless of value, has disrupted this trade flow, resulting in decreased orders and factory suspensions in China. The tariffs have also led to increased costs for American consumers and forced Chinese companies to seek alternative markets. The economic strain is exacerbated by the Chinese government's focus on recovering from a real estate market collapse, complicating efforts to maintain economic growth through exports.

The 2016 U.S. policy change increasing the tax-free threshold for imports to $800 significantly boosted Chinese exports, with many goods entering the U.S. without tariffs, making them attractive to American consumers due to their low prices.

Chinese companies rapidly expanded their presence in the U.S. market through e-commerce platforms, resulting in a dramatic increase in the volume of exports and creating millions of jobs in Chinese manufacturing sectors.

Recent U.S. tariffs on imports from China, including those valued under $800, have disrupted this trade, leading to higher prices for American consumers and significant reductions in Chinese export orders.

As a result of the new tariffs, many Chinese factories have halted operations, and laborers face potential job losses, with economic experts warning that the impact could surpass that of the pandemic on Chinese workers.

In response to these challenges, Chinese businesses are exploring new markets in Europe and Southeast Asia, while the Chinese government encourages domestic consumption, though economic uncertainty continues to suppress consumer spending.

The U.S.-China trade tensions have highlighted China's reliance on exports for economic growth and the difficulties faced in transitioning away from a real estate-dependent economy, which has recently experienced a downturn.

The historical context of U.S. import regulations shows a gradual increase in the de minimis threshold over decades, with the 2016 change representing a major shift that significantly favored Chinese exporters until the recent policy reversal.