Interesting U.S.-China Trade Facts and Figures-The 657 billion U.S. dollars Bilateral Trade
In 2021, the total value of U.S. trade in goods with China amounted to approximately 657 billion U.S. dollars, composed of a 151 billion U.S. dollar export value and a 506 billion U.S. dollar import value, resulting in a trade deficit of around 355 billion U.S. dollars.
In 2020, China’s merchandise trade surplus stood at 535 billion U.S. dollars, increasing continuously for two years. Being an economy heavily reliant on export, China ranked first among countries with the highest trade surplus in 2020, outperforming Germany by approximately 326 billion U.S. dollars. The United States, on the other hand, with imports exceeding exports by approximately 975 billion U.S. dollars that year, ranked first among leading import countries worldwide. Thanks to the ease of the trade war, In 2021, the United States regained the position of China’s most important export market.
In 1972, after years of hostility and isolation, U.S. President Richard Nixon paid China a visit. This tour changed diplomatic and trade relations between two nations. In 1972, China’s total merchandise trade value with the United States amounted to only 95 million U.S. dollars. In the next decade, the trade between China and the United States witnessed robust growth. When China joined the World Trade Organization in 2001, the bilateral trade value surpassed 120 billion U.S. dollars.
Nowadays, China is the U.S.’s third-largest trade partner and most significant import origin. Cell phones, computers, and toys were the most imported goods from China to the United States. Besides, China remains the primary source of the United States’ trade deficit. In 2021, the total value of U.S. trade in goods with China amounted to approximately 657 billion U.S. dollars, composed of a 151 billion U.S. dollar export value and a 506 billion U.S. dollar import value, resulting in a trade deficit of around 355 billion U.S. dollars.
Since Coca-Cola became the first U.S. company that entered China in 1979, an increasing number of U.S. enterprises included China in their business plans. In 2020, 94 out of 121 U.S. enterprises listed on Global Fortune-500 had businesses in China. In that year, the actual utilized foreign direct investment from the U.S. to China stood at 2.3 billion U.S. dollars, while around 6.02 billion U.S. dollars of FDI flowed into the U.S. from China.
The Sino-U.S. trade tensions
On July 6, 2018, the Trump administration officially imposed a 25 percent tariff on goods worth 34 billion U.S. dollars from China, marking the official launch of Trump’s tariff policy towards Beijing. While some Chinese experts were expressing their worries on social media about the impacts this trade war could have on China’s economy, the U.S.-based Brookings Institute published a report in which they claimed that in the high-tech field that Trump wanted to strike, the “added value” from China among these products was very low.
Another two rounds of the U.S. tariffs on Chinese goods followed in 2018, resulting in China’s retaliation, trade talks, and temporary truce agreed to in December that year. However, further negotiations in Beijing and Washington only resulted in more tariff increases in 2019 and 2020.
In early 2021, both countries reached an enforceable agreement to restore the relationship jeopardized by the trade war. The initial trade deal, known as the Phase One Agreement, demanded China expand its purchases on certain U.S. goods and services by a combined 200 billion U.S. dollars in the next two years. Nevertheless, by December 2021, figures showed that China only reached 57 percent of its commitment.
Though the two parties are working on finding a more concrete method to proceed with the second phase of the trade agreement, the clash of their different economic models, increasing geopolitical rivalry, and mistrust will likely keep the Sino-U.S. trade relations unstable in the years to come.
U.S.-China Trade Facts
Overview
- In 2020, China GDP was an estimated $14.9 trillion (current market exchange rates); real GDP was up by an estimated 1.9 percent; and the population was 1.4 billion. (Source: IMF)
- U.S. goods and services trade with China totaled an estimated $615.2 billion in 2020. Exports were $164.9 billion; imports were $450.4 billion. The U.S. goods and services trade deficit with China was $285.5 billion in 2020.
- China is currently our largest goods trading partner with $559.2 billion in total (two way) goods trade during 2020. Goods exports totaled $124.5 billion; goods imports totaled $434.7 billion. The U.S. goods trade deficit with China was $310.3 billion in 2020.
- Trade in services with China (exports and imports) totaled an estimated $56.0 billion in 2020. Services exports were $40.4 billion; services imports were $15.6 billion. The U.S. services trade surplus with China was $24.8 billion in 2020.
- According to the Department of Commerce, U.S. exports of goods and services to China supported an estimated 758,000 jobs in 2019 (latest data available) (475,000 supported by goods exports and 283,000 supported by services exports).
Exports
- China was the United States’ 3rd largest goods export market in 2020.
- U.S. goods exports to China in 2020 were $124.5 billion, up 16.9 percent ($18.0 billion) from 2019 and up 35 percent from 2010. U.S. exports to China are up 549.0 percent from 2001 (pre-WTO accession). U.S. exports to China account for 8.7 percent of overall U.S. exports in 2020.
- The top export categories (2-digit HS) in 2020 were: electrical machinery ($17 billion), oilseeds and oleaginous fruits (soybeans) ($15 billion), machinery ($14 billion), mineral fuels ($10.0 billion), and optical and medical instruments ($9.5 billion).
- U.S. total exports of agricultural products to China totaled $26.5 billion in 2020, our largest agricultural export market. Leading domestic export categories include: soybeans ($14 billion), pork and pork products ($2.3 billion), cotton ($1.8 billion), corn ($1.2 billion), and coarse grains (excluding corn) ($1.1 billion).
- U.S. exports of services to China were an estimated $40.4 billion in 2020, 31.9 percent ($19 billion) less than 2019, but 97 percent greater than 2010 levels. It was up roughly 617.7 percent from 2001 (pre-WTO accession). Leading services exports from the U.S. to China were in the travel, intellectual property (licenses for the use of research and development), and financial services sectors.
Imports
- China was the United States’ largest supplier of goods imports in 2020.
- U.S. goods imports from China totaled $434.7 billion in 2020, down 3.6 percent ($16.0 billion) from 2019, but up 19 percent from 2010. U.S. imports from are up 325 percent from 2001 (pre-WTO accession). U.S. imports from China account for 18.6 percent of overall U.S. imports in 2020.
- The top import categories (2-digit HS) in 2020 were: electrical machinery ($111 billion), machinery ($97 billion), toys and sports equipment ($26 billion), furniture and bedding ($23 billion), and miscellaneous textile articles ($21 billion).
- U.S. total imports of agricultural products from China totaled $3.8 billion in 2020, our 7th largest supplier of agricultural imports. Leading categories include: processed fruit and vegetables ($896 million), food preparations ($327 million), dog and cat food ($202 million), fruit and vegetable juices ($198 million), and other livestock products ($193 million).
- U.S. imports of services from China were an estimated $15.6 billion in 2020, 21.2 percent ($4.2 billion) less than 2019, but 36 percent greater than 2010 levels. It was up roughly 370.9 percent from 2001 (pre-WTO accession). Leading services imports from China to the U.S. were in the transportation, research and development, and professional and management services sectors.
ALSO READ
- H.E Abdulla Shahid President of the 76th Session of the United Nations General Assembly recognized by Public Opinions Uganda
- Ms.Amina J. Mohammed Deputy Secretary-General of UN and Chair of the United Nations Sustainable Development Group recognized by Public Opinions
- Sagicor Group Jamaica was honored by Public Opinions as the Best Financial Services in Jamaica
- Taiwan Semiconductor Manufacturing Company Limited recognised by Public Opinions with the 2022 Global Responsible Investment Mark of Excellence Award
- Uganda on the right path to a first world country-National Planning Authority (NPA).
- What you need to know about East Africa Community-Summarized by Gen Museveni
Trade Balance
- The U.S. goods trade deficit with China was $310.3 billion in 2020, a 9.9 percent decrease ($34.0 billion) over 2019.
- The United States has a services trade surplus of an estimated $24.8 billion with China in 2020, down 37.3 percent from 2019.
Investment
- U.S. foreign direct investment (FDI) in China (stock) was $123.9 billion in 2020, a 9.4 percent increase from 2019. U.S. direct investment in China is led by manufacturing, wholesale trade, and finance and insurance.
- China’s FDI in the United States (stock) was $38.0 billion in 2020, down 4.2 percent from 2019. China’s reported direct investment in the U.S. is led by wholesale trade, manufacturing, and information services.
- Sales of services in China by majority U.S.-owned affiliates were $59.6 billion in 2018 (latest data available), while sales of services in the United States by majority China-owned firms were $20.6 billion
Disseminated by:
Public Opinions
4301 SW 15th ST
Topeka Kansas, 66604
Topeka Avenue,Leavenworth
United States of America(USA)
Tel: +1718-618-9814
Email: [email protected]
Web:publicopinions.net
Call/Whatsapp: +256701992426(Uganda)