China has become a major market for US services exports, and is virtually tied with Canada as the second largest services market for the United States, at close to $53 billion. Those findings are among the results highlighted in the US-China Business Council’s (USCBC) 2018 annual report on state exports
“Despite trade barriers that frustrate full market access, US exports to China continue to contribute to US economic growth,” said USCBC President John Frisbie. “Exports to China support 1 million American jobs annually across a wide range of industries.”
Forty-nine states have increased their goods exports to China over the past ten years, with 17 states experiencing triple-digit growth. Every US state has had triple-digit services export growth to China over the past decade, with 31 states experiencing services export growth of more than 300 percent.
Other key findings
- US exports of goods to China have grown by 86 percent over the last decade, while exports to the rest of the world have grown by only 21 percent.
- US services exports to China surpassed $50 billion for the first time in 2016, the most recent complete year of available data.
- In the decade from 2007 – 2016, US services exports to China grew by 12 percent, while US services exports to the rest of the world contracted by 0.6 percent.
- China is among the top five goods and services export markets for most states. China was the top goods export market for 5 states in 2017, and among the top five markets for 46 states. In services exports, China was the top market for 18 states in 2016, and a top five market for all fifty states.
- Last year, 30 states exported more than $1 billion in goods to China, and 15 states exported more than $1 billion in services to China in 2016. In 2008, only 21 states exported more than $1 billion of goods to China and in 2007 only three states exported more than $1 billion in services to China.
“While China is a large market for US exports, it should be even larger,” said Frisbie. “China should reduce trade and investment barriers that limit the market access of American companies doing business there."
“The US should pursue multiple approaches to address business concerns," said Frisbie. "This includes bringing legally sound, industry-supported cases to the WTO; coordinating with like-minded countries on advocacy with China; and engaging with China in results-oriented dialogue that produces commercially meaningful and measurable outcomes.”