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 $390 billion in 2009 (latest data available for goods and services trade combined). Exports totaled $85 billion; Imports totaled $305 billion. The U.S. goods and services trade deficit with China was $219 billion in 2009.

China is currently our 2nd largest goods trading partner with $457 billion in total (two ways) goods trade during 2010. Goods exports totaled $92 billion; Goods imports totaled $365 billion. The U.S. goods trade deficit with China was $273 billion in 2010.

Trade in services with China (exports and imports) totaled $24 billion in 2009 (latest data available). Services exports were $16 billion; Services imports were $8 billion. The U.S. services trade surplus with China was $7.5 billion in 2009.

Exports

China was the United States' 3rd largest goods export market in 2010.

U.S. goods exports to China in 2010 were $91.9 billion, up 32.2% ($22.4 billion) from 2009, and up 890% from 1994 (the year prior to Uruguay Round). U.S. exports to China accounted for 7.2% of overall U.S. exports in 2010.

The top export categories (2-digit HS) in 2010 were: Electrical Machinery ($11.5 billion), Machinery ($11.2 billion), Miscellaneous Grain, Seed, Fruit (soybeans) ($11.0 billion), Aircraft ($5.8 billion), and Optic and Medical Instruments ($5.2 billion).

U.S. exports of agricultural products to China totaled $17.5 billion in 2010, the largest U.S. Ag export market. Leading categories include: soybeans ($10.8 billion), cotton ($2.2 billion), hides and skins ($952 million), and feeds and fodders ($736 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to China were $15.7 billion in 2009 (latest data available), 4.1% ($615 million) more than 2008 and 664% greater than 1994 levels. Other private services (business, professional and technical services and education services), travel and the royalties and license fees categories accounted for most of U.S. exports in 2009.

Imports

China was the United States' largest supplier of goods imports in 2010.

U.S. goods imports from China totaled $365 billion in 2010, a 23.1 % increase ($68.6 billion) from 2009, and up 841% over the last 16 years. U.S. imports from China accounted for 19.1% of overall U.S. imports in 2010.

The five largest import categories in 2010 were: Electrical Machinery ($90.8 billion), Machinery ($82.7 billion), Toys and Sports Equipment ($25.0 billion), Furniture and Bedding ($20.0 billion), and Footwear ($15.9 billion).

U.S. imports of agricultural products from China totaled $3.4 billion in 2010, the 3rd largest supplier of Ag imports. Leading categories include: processed fruit and vegetables ($811 million), fruit and vegetable juices ($386 million), snack foods (including chocolate) ($190 million), and fresh vegetables ($132 million).

U.S. imports of private commercial services* (i.e., excluding military and government) were $8.2 billion in 2009 (latest data available), down 13.1% ($1.2 billion) from 2008 but up 456% from 1994 level. The other private services (business, professional and technical services), travel, and other transportation (freight services) categories accounted for most of U.S. services imports from China.

Trade Balance

The U.S. goods trade deficit with China was $273.1 billion in 2010, a 20.4% increase ($46.2 billion) over 2009. The U.S. goods trade deficit with China accounted for 43% of the overall U.S. goods trade deficit in 2010.

The United States has a services trade surplus of $7.5 billion with China in 2009 (latest data available), up 33% from 2008.

Investment

U.S. foreign direct investment (FDI) in China (stock) was $49.4 billion in 2009 (latest data available), a 5.9% decrease from 2008.

U.S. direct investment in China is led by the manufacturing and banking sector.

China FDI in the United States (stock) was $791 million in 2009 (latest data available), down 34.4% from 2008.

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 $19.5 billion in 2008 (latest data available), while sales of services in the United States by majority China-owned firms were $432 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.