The latest report issued by the US-China National Trade Commission shows that US merchandise exports to China have fallen to their lowest level since 2011.
This 2020 US state export report to China states that due to trade frictions, US exports to China have declined sharply in the past two years, while US export growth to other markets has not fully compensated for the losses caused by shrinking exports to China.
According to the report, after shrinking by 7% in 2018, U.S. merchandise exports to China fell further by 11.4% in 2019 to 104.8 billion US dollars. Only two-fifths of the states ’exports of goods to China increased last year, and some states’ exports have fallen sharply.
For example, between 2010 and 2017, Missouri ’s annual exports of goods to China were between US $ 1.5 billion and US $ 2 billion, but in 2018 this figure fell below US $ 1 billion, and in 2019 there was only very weak growth. Washington State ’s annual exports of goods to China have exceeded US $ 11 billion since 2013, but it fell to more than US $ 5 billion last year. In 2017, there were 30 states that exported more than one billion US dollars of goods to China, but in 2019 there were only 27.
US service exports to China are also slowing. According to the report, service exports to China have always been one of the significant highlights of the expansion of US exports. Over the past decade, US service exports to China have increased by 230%. However, from 2016 to 2018, the average annual growth rate of U.S. service exports to China was only 2%, which is significantly different from the average annual growth rate of more than 18% between 2009 and 2016.
Reports that despite the impact of trade frictions, China is still one of the largest markets for US exporters, and exports to China are critical to US economic growth. In 2019, China is one of the top five export destinations for commodities in 42 states in the United States, and many states receive considerable economic benefits from service exports to China.