Which statement best describes the trade relationship between the US and China?

U.S.-China Trade Facts

Overview

• In 2020, China GDP was an estimated $14.9 trillion (current market exchange rates); real GDP was up by an estimated 1.9 percent; and the population was 1.4 billion. (Source: IMF)
• U.S. goods and services trade with China totaled an estimated $615.2 billion in 2020. Exports were $164.9 billion; imports were $450.4 billion. The U.S. goods and services trade deficit with China was $285.5 billion in 2020.
• China is currently our largest goods trading partner with $559.2 billion in total (two way) goods trade during 2020. Goods exports totaled $124.5 billion; goods imports totaled $434.7 billion. The U.S. goods trade deficit with China was $310.3 billion in 2020.
• Trade in services with China (exports and imports) totaled an estimated $56.0 billion in 2020. Services exports were $40.4 billion; services imports were $15.6 billion. The U.S. services trade surplus with China was $24.8 billion in 2020.
• According to the Department of Commerce, U.S. exports of goods and services to China supported an estimated 758,000 jobs in 2019 (latest data available) (475,000 supported by goods exports and 283,000 supported by services exports).

Exports

• China was the United States' 3rd largest goods export market in 2020.
   
• U.S. goods exports to China in 2020 were $124.5 billion, up 16.9 percent ($18.0 billion) from 2019 and up 35 percent from 2010. U.S. exports to China are up 549.0 percent from 2001 (pre-WTO accession). U.S. exports to China account for 8.7 percent of overall U.S. exports in 2020.
   
• The top export categories (2-digit HS) in 2020 were: electrical machinery ($17 billion), oilseeds and oleaginous fruits (soybeans) ($15 billion), machinery ($14 billion), mineral fuels ($10.0 billion), and optical and medical instruments ($9.5 billion).
   
• U.S. total exports of agricultural products to China totaled $26.5 billion in 2020, our largest agricultural export market. Leading domestic export categories include: soybeans ($14 billion), pork and pork products ($2.3 billion), cotton ($1.8 billion), corn ($1.2 billion), and coarse grains (excluding corn) ($1.1 billion).
   
• U.S. exports of services to China were an estimated $40.4 billion in 2020, 31.9 percent ($19 billion) less than 2019, but 97 percent greater than 2010 levels. It was up roughly 617.7 percent from 2001 (pre-WTO accession). Leading services exports from the U.S. to China were in the travel, intellectual property (licenses for the use of research and development), and financial services sectors.
   

Imports

• China was the United States' largest supplier of goods imports in 2020.
   
• U.S. goods imports from China totaled $434.7 billion in 2020, down 3.6 percent ($16.0 billion) from 2019, but up 19 percent from 2010. U.S. imports from are up 325 percent from 2001 (pre-WTO accession). U.S. imports from China account for 18.6 percent of overall U.S. imports in 2020.
   
• The top import categories (2-digit HS) in 2020 were: electrical machinery ($111 billion), machinery ($97 billion), toys and sports equipment ($26 billion), furniture and bedding ($23 billion), and miscellaneous textile articles ($21 billion).
   
• U.S. total imports of agricultural products from China totaled $3.8 billion in 2020, our 7th largest supplier of agricultural imports. Leading categories include: processed fruit and vegetables ($896 million), food preparations ($327 million), dog and cat food ($202 million), fruit and vegetable juices ($198 million), and other livestock products ($193 million).
   

• U.S. imports of services from China were an estimated $15.6 billion in 2020, 21.2 percent ($4.2 billion) less than 2019, but 36 percent greater than 2010 levels. It was up roughly 370.9 percent from 2001 (pre-WTO accession). Leading services imports from China to the U.S. were in the transportation, research and development, and professional and management services sectors.

Trade Balance

• The U.S. goods trade deficit with China was $310.3 billion in 2020, a 9.9 percent decrease ($34.0 billion) over 2019.
   
• The United States has a services trade surplus of an estimated $24.8 billion with China in 2020, down 37.3 percent from 2019.
   

Investment

• U.S. foreign direct investment (FDI) in China (stock) was $123.9 billion in 2020, a 9.4 percent increase from 2019. U.S. direct investment in China is led by manufacturing, wholesale trade, and finance and insurance.
   
• China's FDI in the United States (stock) was $38.0 billion in 2020, down 4.2 percent from 2019. China's reported direct investment in the U.S. is led by wholesale trade, manufacturing, and information services.
   
• Sales of services in China by majority U.S.-owned affiliates were $59.6 billion in 2018 (latest data available), while sales of services in the United States by majority China-owned firms were $20.6 billion.