Posted at 7:55 AM
China responded quickly to the global economic downturn in 2008 and, as a result of a combination of monetary, fiscal, and bank-lending measures China’s GDP grew 9.2 percent in 2009 and an impressive 10.3 percent in 2010. Projections are for the GDP growth to slow slightly in 2011 to between 9 and 9.5 percent.
Accompanying the rise in China’s GDP, U.S. exports to China increased in 2010 by over 32 percent to almost $92 billion. Of course, China’s exports to the U.S. also increased by 23 percent, leading to a balance of trade deficit of $273 billion. After falling in 2009, the trade imbalance with China is now on the rise again. China remains the U.S.’s second largest trading partner after Canada.
After near zero percent inflation in 2009, in 2010 consumer price index rose 3.3 percent, exceeding the authorities’ target of 3.0 percent. Inflation reached 5.1 percent in December 2010, alarming authorities who undertook a multipronged effort to bring real estate prices, food prices and monetary liquidity driven by bank lending under greater control.
Inbound FDI rebounded after a dip in 2009, rising 17.4 percent in 2010 to almost $106 billion. China is the world’s second largest recipient of FDI after the United States.
China was the United States' 3rd largest goods export market in 2010.
China is currently our 2nd largest goods trading partner with $457 billion in total (two ways) goods trade during 2010.
U.S. exports of agricultural products to China totaled $17.5 billion in 2010, the largest U.S. Ag export market.
U.S. direct investment in China is led by the manufacturing and banking sector.
*According to Office of the United States Trade Representative
China stands as the world’s third largest market for luxury goods behind Japan and the United States, and some studies estimate that there are now more than 200 million Chinese citizens with a per capita income over USD 8,000. Over the next several years, most economists predict a surge in the number of people achieving true middle class status.
Despite these remarkable changes, China is still a developing country with significant economic divisions between urban and rural areas, albeit one with vast potential. The numbers of migrant workers continues to remain high, with the number of laborers employed outside their hometowns at approximately 150 million in 2009. This number has appeared to remain static, however, with some areas, especially in the East, reporting shortages of such laborers and tightening wage situations. As of 2010, the per-capita disposable income of urban residents was RMB 19,109 yuan (USD 2,895), and the per-capita disposable income of rural residents stood at RMB 5,919 (USD 897).
Ex-Im Bank Finances Opportunity in China
The Export-Import Bank of the United States (Ex-Im Bank) provides U.S. exporters and their international buyers with the financing tools they need to successfully buy U.S. products and services.
Office of the U.S. Trade Representative - China
Office of the U.S. Trade Representative (USTR) is responsible for developing and coordinating U.S. international trade, commodity, and direct investment policy, and overseeing negotiations with other countries.
U.S. Department of Agriculture (USDA) - Foreign Agricultural Service
Represent the interests of U.S. agriculture and assist exporters of American agricultural products in assessing and developing markets in Mainland China.
U.S. State Department Background Notes
Background Notes include facts about the land, people, history, government, political conditions, economy, and foreign relations of independent states, some dependencies, and areas of special sovereignty.
U.S. Trade and Development Agency - East Asia and Eurasia Region
The U.S. Trade and Development Agency (USTDA) advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds technical assistance, early investment analysis, training, reverse trade missions, and business workshops that support the development of a modern infrastructure and a fair and open trading environment.