China

USTR's Office of China Affairs is responsible for managing the formulation and implementation of U.S. trade policy for China, Hong Kong, Macao, Taiwan and Mongolia, with the goal of increasing access for U.S. products and services in these markets and ensuring that the World Trade Organization (WTO) and other commitments are enforced.

It also includes working closely with USTR's Office of the General Counsel to identify areas where China is not fully honoring its WTO commitments, and developing and implementing strategies to enforce them.

U.S.-China Trade Facts

U.S. goods and services trade with China totaled $410 billion in 2007 (latest data available). Exports totaled $79 billion; Imports totaled $330 billion. The U.S. goods and services trade deficit with China was $251 billion in 2007.

China is currently our 2nd largest goods trading partner with $407.5 billion in total (two ways) goods trade during 2008. Goods exports totaled $69.7 billion; Goods imports totaled $337.8 billion. The U.S. goods trade deficit with China was $268.0 billion in 2008.

Trade in services with China (exports and imports) totaled $23.0 billion in 2007 (latest data available). Services exports were $14.2 billion; Services imports were $8.8 billion. The U.S. services trade surplus with China was $5.4 billion in 2007.

Exports

China was the United States' 3rd largest goods export market in 2008.

U.S. goods exports to China in 2008 were $69.7 billion, up 6.9% ($4.5 billion) from 2007, up 651% from 1994 (the year prior to Uruguay Round). U.S. exports to China accounted for 5.4% of overall U.S. exports in 2008, up from 1.8% in 1994.

The top export categories (2-digit HS) in 2008 were: Electrical Machinery ($11.4 billion), Machinery ($9.4 billion), Miscellaneous Grain, Seed, Fruit (soybeans) ($7.3 billion), Aircraft ($3.9 billion), and Plastics ($3.8 billion).

U.S. exports of agricultural products to China totaled $12.2 billion in 2008, the 4th largest U.S. Ag export market. Leading categories include: soybeans ($7.3 billion), cotton ($1.6 billion), and hides and skins ($859 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to China were $14.2 billion in 2007 (latest data available), 23.8% ($2.7 billion) more than 2006 and 591% ($12.1 billion) greater than 1994 levels. Other private services (led by business, professional and technical services and education services) and other transportation categories accounted for most of U.S. exports in 2007.

Imports

China was the United States' 2nd largest supplier of goods imports in 2008.

U.S. goods imports from China totaled $337.8 billion in 2008, a 5.1% increase ($16.3 billion) from 2007, and up 771% over the last 14 years. U.S. imports from China accounted for 16.1% of overall U.S. imports in 2008, up from 5.8% in 1994.

The five largest import categories in 2008 were: Electrical Machinery ($80.3 billion), Machinery ($65.1 billion), Toys and Sports Equipment ($27.2 billion), Furniture and Bedding ($19.4 billion), and Footwear ($14.5 billion).

U.S. imports of agricultural products from China totaled $3.5 billion in 2008, the 3rd largest supplier of Ag imports. Leading categories include: processed fruit and vegetables ($813 million), fruit and vegetable juices ($677 million), snack foods (including chocolate) ($186 million), and Tree Nuts ($103 million).

U.S. imports of private commercial services* (i.e., excluding military and government) were $8.8 billion in 2007 (latest data available), up 13.9% ($1.1 billion) from 2006 and up 493% ($7.3 billion) from 1994 level. Other transportation, and travel accounted for most of U.S. services imports from China.

Trade Balance

The U.S. goods trade deficit with China was $268.0 billion in 2008, a 4.6% increase ($11.8 billion) over 2007. The U.S. goods trade deficit with China accounted for 32.8% of the overall U.S. goods trade deficit in 2008.

The United States has a services trade surplus of $5.4 billion with China in 2007 (latest data available).

Investment

U.S. foreign direct investment (FDI) in China (stock) was $28.3 billion in 2007 (latest data available), a 20.9% increase from 2006.

U.S. direct investment in China is mostly in the manufacturing sector.

China FDI in the United States (stock) was $1.1 billion in 2007 (latest data available), up 12.1% from 2006.

China direct investment in the U.S. was mostly in the wholesale trade sector.

Sales of services in China by majority U.S.-owned affiliates were $10.0 billion in
2006 (latest data available), while sales of services in the United States by majority China-owned firms were $167 million.

 

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*Note: Refers to private services trade not including U.S. military sales, direct defense expenditures, and other miscellaneous U.S. government services.