U.S. exports rise on soaring Chinese demand amid trade deficit

U.S. exports rise on soaring Chinese demand amid trade deficit

U.S. exports to China has reached a new record-high of $91.9 billion last year even as the trade deficit between the two countries widened.

There has been growing concern about the negative impact on U.S. jobs and competitiveness because of the trade imbalance with China. Yet China is now the fastest-growing recipient of U.S. exports according to the U.S.-China Business Council.

American products have entered the Chinese market at an unprecedented rate of 468 percent over the last ten years compared to 55 percent export growth in other countries.

Electronics and planes from California, Texas and Washington state comprise the majority of U.S. exports to China. Chemicals and agricultural products also make up a substantial share.

The Obama administration wants to increase U.S. exports to twice its present rate by 2014. China figures to be a major destination of American products for years to come.

China is on pace to surpass the United States as the leading importer in the world. Right now, the U.S. imports some $1.9 trillion worth of products while China gets $1.4 million worth of goods.

Even with total imports growing, economists still expect the trade deficit between China and the U.S., estimated to be between $180 billion and $250 billion, to continue to widen.

But booming demand from China and a weak U.S. dollar both favor the prospects for American goods delivered to China.

China will need a wide variety of U.S. exports like grain, electronics, and planes, and even paper and metals to fill its growing domestic demand.

Posted by James Fried on Friday April 08 2011, 1:12 AM EST. Ref: NYT. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0