China remains an important export market for the United States, and exports to China support a large number of jobs across the United States, according to a recent report by the US-China Business Council.

Us goods exports to China rose 21% to $149.2 billion in 2021, hitting a record high. After bottoming out in 2019, US merchandise exports to China recorded two consecutive years of growth, driven by huge increases in the top three export categories -- oilseeds and grains, semiconductors and parts, and oil and gas, the report said.

In 2021, the US exported $4.8 billion more oilseed and grain crops (such as soybeans, wheat and corn) to China than in previous years, with the latest total revenue reaching $21.9 billion, according to the report. Illinois, Iowa, Kansas and Nebraska each saw their exports increase by more than $500 million. Ten states export more than $1 billion in oilseeds and grains. Exports of semiconductors and their components rose $2.1 billion to $14.1 billion. While the United States is a relatively small source of Chinese chip imports, China still creates huge export opportunities for American companies. Oregon accounted for more than half of the nation's chip exports, while New Mexico's exports to China grew significantly, up 220 percent to $1.2 billion.

The report also noted that while us exports of goods to China grew, us exports of services to China fell 33 percent to $37 billion in 2020, the lowest level since 2013, highlighting the severe impact of the pandemic on the travel and education sectors. Even North Dakota, which saw the highest growth in service exports to China, saw a 19 per cent decline.

"In terms of jobs supported by US exports to China, the rise in goods exports in 2020, driven by tariff reductions, failed to compensate for the decline in service exports due to the impact of the pandemic." Us exports of goods and services to China supported just over 858,000 jobs in 2020, down 44,000 or 5 percent from 2019, according to the report.

Even so, the report bluntly states that China remains an important export market for the United States. As in past years, China will remain the third-largest market for U.S. goods exports in 2021, behind Canada and Mexico, both OF which are U.S. Mexico-Canada partners. Although China fell to sixth place in the list of U.S. services export markets in 2020, it remained the number one export market in terms of total exports of goods and services in four states, the top three in 38 states, and the top five in 47 states.

"Trade between the United States and China was very strong last year, and exports to China helped us industries remain profitable and competitive," SAID Craig Allen, president of the US-China Business Council, on the day of the report's release. "He believes that the reasons why US exports to China remain strong despite the dual pressures of the epidemic and tariffs are, first, the tariff exemption procedures in relevant areas in the US and, second, China's economy continues to maintain a good momentum of development in 2021.