US Exports in Services to China Up Sharply

Washington, DC, October 19, 2007 - US exports of services to China jumped sharply in 2006, leading to a surplus of $3.65 billion for the year, according to US Department of Commerce data released this week. The 20.2 percent increase in exports to China outpaced services imports from China, which grew 9.3 percent.

"These data underscore the strong position of US service industries in our trade with China and the potential for significant increases in the future. A study done for the US-China Business Council shows that the services sector has positive potential for both countries, with the United States adding jobs as a result of its export strength," said John Frisbie, President of the US-China Business Council (USCBC).

Trade in services covers a wide range of businesses, from express package and freight deliveries, to information technology services, financial and insurance services, and travel.

In the study released earlier this year by the China Business Forum, the USCBC's educational and research arm, Oxford Economics projected major growth in both the US services surplus with China and of jobs supported by that surplus, if China continues to remove barriers to trade in this sector. The study projects continued growth and a surplus of about $15 billion by 2015, leading to the creation of 60,000 US jobs (see http://www.chinabusinessforum.org/pdf/us-china-services-trade.pdf).

Commerce data show increases for US service exporters across most sectors in 2006, with financial services up 58.8 percent, the travel sector up 33.2 percent, royalties and licensing fees up 21.9 percent and insurance up 15.8 percent. The data are taken from the October 2007 Survey of Current Business, http://www.bea.gov/scb/toc/1007cont.htm.

The US-China Business Council (USCBC, www.uschina.org) is the leading organization of US companies engaged in business with the People's Republic of China. Founded in 1973, the USCBC provides extensive China-focused information, advisory and advocacy services, and events, to roughly 250 US corporations operating within the United States and throughout Asia.