Investing
States Sending the Most Goods to China
Published:
Last Updated:
Over the past decade, U.S. exports to China have grown at an annual rate of nearly 17% each year. In 2012 alone, the 50 states shipped more than $100 billion worth of goods. After Canada and Mexico, China is now the U.S.’s third-largest trade partner.
The U.S.-China Business Council, a nonprofit organization that promotes trade between the two nations, has released data on exports to China from each state. Last year, Texas exported more than $10 billion in goods to the country. California exported more than $13 billion. Based on the gross export data provided by the U.S.-China Business Council, 24/7 Wall St. reviewed the 10 states exporting the most goods to China.’
Click here to see which states send the most goods to China
While U.S. exports to China grew by nearly 300% in the past 10 years, the growth has slowed substantially in the past several years as China’s economic growth suffered from the global recession. U.S. exports to China increased by just 6.5% last year. Despite the slowing growth, it was still better than nearly all other export partners, said Daniel Anthony, research director at Trade Partnership, a Washington D.C. economic research consulting firm.
For the first couple of months of this year, U.S. exports to China rose by 4.3%. While it was far less than previous years, “the rest of the world are up 0.2%.” explained Anthony. “So, in a lot of ways, at least for the first couple months of 2013, export Growth to China is really the only game in town.”
The states that export the most goods benefit from demand that remains strong in China but is weak in most other countries. According to Anthony, in the first few months of this year, machinery exports to China rose by 13% and declined by 7% to the rest of the world. Computers and electronics exports to China increased by 18% and fell by 3.4% to the rest of the world. This benefits states like California, which alone accounts for well more than a quarter of all U.S. computer and electronics shipped to China.
Other states that have benefited from growing Chinese demand include Washington, due to increased demand for its aerospace industry. Ohio and Illinois are profiting from increased demand of soybeans and other crops. Michigan has benefited from rising auto shipments to China, which grew 23% in the first few months of 2013.
Not all evidence suggests that trade with China is unconditionally positive for all Americans. According to the Economic Policy Institute, between 2001 and 2011, America’s trade deficit with China led to the displacement of 2.87% of all jobs in California. In Minnesota, another top exporter, this figure was 2.66%. However, Anthony notes, “it doesn’t make sense for the U.S. to hang on to low-value jobs.” Instead, he argues, Americans should focus on promoting jobs that utilize the U.S.’s relative strengths and advantages, while exporting less valuable work.
To determine the 10 states with the most exports to China, 24/7 Wall St. reviewed figures provided by the U.S.-China Business Council, a nonprofit organization that promotes trade relations between China and the U.S. All figures provided by the council are not inflation adjusted. Data on exports for different metropolitan areas comes from the International Trade Administration (ITA) and are for 2011, while figures on crop exports are produced by the U.S. Department of Agriculture’s (USDA) Economic Research Service and are also as of 2011.
These are the 10 states sending the most goods to China.
10. South Carolina
> Exports to China, 2012: $3.3 billion
> Export growth 2003-2012: 1,001%
> Largest export: Transportation equipment
> Largest export as a pct. of U.S. total: 11.25%
South Carolina’s exports to China have increased tenfold over the past decade, ending in 2012. By far, the state’s largest export to China was transportation equipment, accounting for $1.8 billion of the roughly $3.3 billion in exports to China last year. It also accounted for roughly 11% of all transportation equipment exported to China from the United States. No other good or service from the state accounted for more than $300 million in total exports to China. China was not even the state’s largest export partner, coming in third behind Canada and Germany. BMW and Michelin are among the transportation equipment manufacturers with major operations in South Carolina.
Also Read: The Most Popular American Brands In China
9. Minnesota
> Exports to China, 2012: $3.5 billion
> Export growth 2003-2012: 418%
> Largest export: Crop production
> Largest export as a pct. of U.S. total: 7.14%
Minnesota exported $3.5 billion worth of goods to China in 2012. The only country to purchase more of Minnesota’s goods that year was Canada, at roughly $6.0 billion in goods and services. Of all exports to China from the state, $1.5 billion came from crop production. This comprised just over 7% of all crop exports from the United States to China in 2012. The state is home to agriculture production giant Cargill, the largest private company in the country. Between 2003 and 2012, exports from Minnesota to China rose 418%. Exports to other countries rose just 75% in that same time. The Minneapolis metro area, which covers parts of Minnesota and Wisconsin, was the 10th largest exporter in the nation in 2011.
8. Ohio
> Exports to China, 2012: $3.7 billion
> Export growth 2003-2012: 344%
> Largest export: Crop production
> Largest export as a pct. of U.S. total: 5.24%
A large proportion of Ohio’s exports, totaling $19.5 billion, went to Canada in 2012. China, by comparison, was just the state’s third largest export market, despite exports to China having more than tripled since 2003. Of the $3.7 billion in goods Ohio sold to Chinese counterparties last year, more than $1 billion was crop production. A portion of this was due to the export of soybeans, of which China is by far the world’s largest purchaser, according to Anthony at the Trade Partnership. Ohio was one of seven states that exported more than $1 billion worth of soybeans in 2011, according to the USDA. In all, crop production was the largest U.S. export to China nationwide, accounting for $21 billion in 2012. Chinese trade became a hotly contested issue in Ohio during the 2012 presidential campaign as well, when both candidates accused one another of not “standing up” to China.
7. Michigan
> Exports to China, 2012: $3.7 billion
> Export growth 2003-2012: 743%
> Largest export: Transportation equipment
> Largest export as a pct. of U.S. total: 10%
China was Michigan’s third largest export partner in 2012 after Canada or Mexico. Of the $3.7 billion worth of goods shipped to China, $1.6 billion worth was transportation equipment. Yet the automobile industry is not the only sector sending off goods to China. In September, Michigan-based Kellogg Co. (NYSE: K) formed a joint venture with a Singapore-based partner to expand distribution of its cereals and snacks in China. Michigan is one of just eight states where total exports in 2012 have doubled since 2009. Between 2003 and 2012, exports to China increased 743%. Meanwhile, exports to the rest of the world increased just 63% in that time. Of the state’s merchandise exports, as measured by the ITA, more than 70% came from Detroit in 2011. However, Detroit exported a higher value of goods to Mexico, Canada and Saudi Arabia, than to China.
6. Georgia
> Exports to China, 2012: $3.8 billion
> Export growth 2003-2012: 443%
> Largest export: Transportation equipment
> Largest export as a pct. of U.S. total: 4.98%
Georgia exported $3.8 billion in goods to China in 2012, more than it sent to any other foreign nation except Canada. From 2003 through 2012, Georgia increased the value of its exports to China by more than 400%. As of the end of 2012, Georgia exported a wide range of goods and services to China. Transportation equipment, paper products and crop production accounted for more than $500 million in exports each. Among the state’s exports supplying an increased demand overseas, especially in China, are Georgia peanuts.
5. New York
> Exports to China, 2012: $4.2 billion
> Export growth 2003-2012: 192%
> Largest export: Waste and scrap
> Largest export as a pct. of U.S. total: n/a
Although New York ships more exports to China than all but four other states, China is only its sixth largest export market. However, if the $8.5 billion worth of goods sent to Hong Kong were included in the total, China would be the state’s top export market in 2012. Between 2003 and 2012, exports to China rose 192%. Meanwhile, exports to other countries rose just 89%. About $1.2 billion worth of waste and scrap was exported from New York to China in 2012, more than any other good. In 2011, the New York City metropolitan area exported more than $7.4 billion worth of goods to China, more than all metro areas except for Los Angeles.
Also Read: The 10 Best Cars for the American Family
4. Illinois
> Exports to China, 2012: $6.1 billion
> Export growth 2003-2012: 422%
> Largest export: Crop production
> Largest export as a pct. of U.S. total: 11.43%
Between 2011 and 2012, the total value of Illinois’ exports to China rose from $4.9 billion to $6.1 billion. This made China the third largest export market of goods and services from the state, although Canada remained the top export market, at $19.2 billion in 2012. By far, the largest export to China last year was crop production. A large amount of this was the production of soybeans, of which Illinois was one of the nation’s largest producers and exporters. According to the USDA, Illinois exported more than $2.5 billion in soybeans worldwide in 2011, the most of any state except Iowa. That same year, Illinois Governor Pat Quinn traveled to China to promote trade between the country and his state. During the trip, Quinn announced that Illinois-headquartered food processor Archer Daniels Midland Co. (NYSE: ADM) had signed a $100 million soybean sales agreement with a Chinese company.
3. Washington
> Exports to China, 2012: $7.9 billion
> Export growth 2003-2012: 239%
> Largest export: Transportation equipment
> Largest export as a pct. of U.S. total: 30.63%
In 2012, Washington exported to China $7.9 billion worth of goods manufactured in the state. This was more than any other country except for Canada, which purchased more than $8.2 billion worth of goods. Transportation equipment accounted for $4.9 billion worth of the state’s exports to China, which was more than 30% of all transportation equipment exported from the United States to China. Boeing Co. (NYSE: BA), which manufactures many its airplanes in the Seattle area, announced in March of 2012 that it had secured a deal to provide 30 additional 777s to the fleets of existing Chinese airlines. In addition, the company has exported its new Dreamliner jet to China, among other places. Between 2003 and 2012, exports to China rose 239%. Exports to other places in the world have risen just 89% during that time. In 2011, the ITA determined that the Seattle metro area accounted for more than three-quarters of all Washington merchandise exports to China.
2. Texas
> Exports to China, 2012: $10.1 billion
> Export growth 2003-2012: 229%
> Largest export: Chemicals
> Largest export as a pct. of U.S. total: 30.83%
Texas ranked as one of the largest exporters to China, exporting a total of more than $10 billion in goods and services for the second straight year. But while the state more than doubled the dollar amount of its exports to the country between 2003 and 2012, they increased only marginally last year, from $10.032 billion in 2011 to $10.085 billion in 2012. Still, the state exported $3.7 billion in chemicals to China, or nearly one-third of the $12 billion the United States overall exported to China. Additionally, Texas shipped more than $1 billion in each crops, computers and electronics, and machinery to China. Some Chinese businesses are also interested in investing in Texas. Last September, Cowboys Stadium in Arlington hosted a conference to help pair Chinese investors with U.S. companies looking for capital.
Also Read: Ten Cities with the Worst Traffic
1. California
> Exports to China, 2012: $13.6 billion
> Export growth 2003-2012: 159%
> Largest export: Computers and electronics
> Largest export as a pct. of U.S. total: 27.86%
No other state exported more to China in 2012 than California. China was the state’s third largest export market last year, following Mexico and Canada. Of the $13.6 billion worth of goods shipped to China from California in 2012, $3.9 billion was computers and electronics, unsurprising given the presence of large technology companies such as Apple Inc. (NASDAQ: AAPL) and Hewlett-Packard Co. (NYSE: HPQ) in the state. In April, California opened a trade and investment office in Shanghai, the first office opened overseas after an eight-year hiatus. The state also plans to open a second office in Beijing. The metropolitan areas of both Los Angeles and San Francisco were among the 10 largest exporters to China in 2011.
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.