U.S.-China Economic and Security Review Commission2
Bilateral Trade
The U.S. 2017 Goods Deficit with China Sets a New Record
In 2017, the U.S. goods deficit with China grew by about 8.1 percent over 2016 to reach $375.2 billion—the highest
on record (see Figure 1). In the fourth quarter of 2017, the U.S. goods deficit with China grew to $101.5 billion—a
13.2 percent increase year-on-year. Higher level of imports, which grew 11.9 percent year-on-year in the fourth
quarter of 2017, were the main contributor to the higher deficit, though U.S. exports to China also grew by 8 percent
over the same period. Growth in exports to China was primarily driven by crude oil, passenger aircraft, and aircraft-
related components, while growth in imports from China consisted of mobile phones, household items, and
computers.1
Figure 1: U.S. Goods Trade with China, 2008–2017
Source: U.S. Census Bureau, Trade in Goods with China, February 6, 2018. https://www.census.gov/foreign-trade/balance/c5700.html.
Transpiration Dominates U.S. Exports to China, Crude Oil Exports on the Rise
Though transportation equipment comprised the greatest share of U.S. exports to China in the fourth quarter of
2017, exports of crude oil showed impressive growth, rising from $685 million in the fourth quarter of 2016 to
nearly $2.8 billion in the last quarter of 2017 (see Table 1). Data from the U.S. Energy Information Administration
show that in 2017, China overtook the United States as the world’s top crude oil importer, importing 8.4 barrels per
day relative to 7.9 barrels per day in the United States.2 U.S. exports of transportation equipment and chemical
products also saw moderate growth, while agricultural product exports declined 23.5 percent relative to the fourth
quarter in 2016.
Though U.S. imports of Chinese manufactures, electrical equipment, and non-electrical machinery saw moderate
growth year-on-year, computers and electronics continue to dominate, accounting for 40 percent of all U.S. imports
in the fourth quarter of 2017 (up from 35 percent in the third quarter).
-550
-450
-350
-250
-150
-50
50
150
2008200920102011201220132014201520162017
US
$ b
illi
on
s
ExportsImportsBalance
U.S.-China Economic and Security Review Commission3
Table 1: U.S. Trade with China: Top Five Exports and Imports
(US$ millions)
Source: U.S. Census Bureau, USA Trade Online, February 6, 2018. https://usatrade.census.gov/.
Advanced Technology Products Deficit Widens
The U.S. trade deficit in advanced technological products (ATP) exceeded $135 billion by the end of 2017, an 18.5
percent increase over 2016 (see Table 2). Information and communication technologies (ICT) remained the greatest
contributor to the deficit, with $155.5 billion in imports from China compared to $4.5 billion exports from the
United States. This product category alone comprised over 90 percent of China’s ATP exports to the United States.
The United States’ largest ATP export to China, aerospace, stood at 46 percent of annual U.S. ATP exports, while
U.S. nuclear technology and life science exports saw growth in their trade surpluses in 2017.
Table 2: ATP Trade through December 2017
(US$ millions)
Source: U.S. Census Bureau (Washington, DC: U.S. Department of Commerce, Foreign Trade Division, February 2018).
http://www.census.gov/foreign-trade/statistics/product/atp/2017/12/ctryatp/atp5700.html.
U.S. Top-Five Exports to ChinaU.S. Top-Five Imports from China
Exports (in US$
millions)
Share of
total
(%)
Change
over
Q4'16
(%)
Imports (in US$
millions)
Share of
total
(%)
Change
over
Q4'16
(%)
Transportation Equipment8,205.720.8%23.4%Computer and Electronic Products57,226.3 40.6%18.4%
Agricultural Products7,454.818.9%-23.5%
Miscellaneous Manufactured
Commodities12,557.3 8.9%9.7%
Computer and Electronic
Products4,579.111.6%1.9%
Electrical Equipment, Appliances,
and Component11,518.6 8.2%8.4%
Chemicals4,230.910.8%13.4%Machinery, Except Electrical8,724.2 6.2%17.3%
Oil and Gas2,783.47.1%306.3%Apparel and Accessories7,169.9 5.1%-0.8%
Other 12,101.8 30.7%-Other43,627.7 31.0%-
Total39,355.8 100.0%Total140,824.0100.0%
Transportation Equipment29,543.6 22.7%Computer and Electronic Products184,397.536.5%
Computer and Electronic
Products17,105.9 13.1%
Electrical Equipment, Appliances,
and Component43,258.9 8.6%
Agricultural Products15,903.4 12.2%
Miscellaneous Manufactured
Commodities41,831.9 8.3%
Chemicals15,157.1 11.6%Machinery, Except Electrical35,035.4 6.9%
Machinery, Except Electrical9,326.77.2%Apparel and Accessories29,344.6 5.8%
Other 43,332.9 33.2%Other171,728.7 34.0%
Total130,369.5 100.0%Total505,597.1100.0%
Quarter 4 (Oct-Dec'17)Quarter 4 (Oct-Dec'17)
2017 Year-to-Date2017 Year-to-Date
Quarter 4
ExportsImports
Balance
Q4'2017
Balance
Q4'2016
Balance
YOYExportsImports
Balance
2017
Balance
2016
Balance
YOY
TOTAL 10,13253,614-43,482-36,39719.5%35,652171,067-135,414-114,30318.5%
(01) Biotechnology 256502061974.7%96019476669410.3%
(02) Life Science 1,04364939420988.7%3,7132,5941,11978343.0%
(03) Opto-Electronics 1671,937-1,770-1,25840.7%6075,312-4,705-5,207-9.6%
(04) Information & Communications 1,07748,990-47,913-39,60121.0%4,511155,535-151,024-128,08217.9%
(05) Electronics 1,6991,184515672-23.4%6,0924,4821,6102,249-28.4%
(06) Flexible Manufacturing 823372452226100.1%2,9551,3471,6071,654-2.8%
(07) Advanced Materials 72109-37-48-23.3%279413-134-137-2.2%
(08) Aerospace 4,9792614,7183,32142.1%16,3041,02715,27713,74211.2%
(09) Weapons 145-44-432.2%3138-135-141-4.6%
(10) Nuclear Technology 1517-2-71-96.5%2282520314243.1%
QuarterlyCumulative year-to-date
U.S.-China Economic and Security Review Commission4
U.S. Services Trade with China Shows a Decline in Chinese Tourism
In the third quarter of 2017, U.S. services exports to China grew only 1.1 percent year-on-year—their slowest rate
since 2009 (see Figure 2).* Overall, U.S. services exports to China totaled $16.3 billion in the third quarter, U.S.
services imports from China were $4.2 billion (a 5.4 percent increase year-on-year), and the United States’ trade
surplus in services with China totaled $12 billion (see Figure 3).3
Figure 2: U.S. Services Exports to China Growth, 2015–2017
(year-on-year)
Source: U.S. Department of Commerce – Bureau of Economic Analysis, U.S. Trade in Goods and Services by Selected Countries and
Areas, 1999-Present, December 19, 2017.
Figure 3: U.S. Trade in Services with China, 2014–2017
Source: U.S. Department of Commerce – Bureau of Economic Analysis, U.S. Trade in Goods and Services by Selected Countries and
Areas, 1999-Present, December 19, 2017.
* In the November 2017 Economics and Trade Bulletin, the Commission reported that U.S. services exports to China grew 10.4 percent year-
on-year in the second quarter of 2017. Following data revisions from the U.S. Department of Commerce, this growth is now estimated to
be 1.3 percent year-on-year. U.S. Department of Commerce – Bureau of Economic Analysis, U.S. Trade in Goods and Services by Selected
Countries and Areas, 1999-Present, December 19, 2017.
0%
2%
4%
6%
8%
10%
12%
14%
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
201520162017
-$5
$0
$5
$10
$15
$20
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2014201520162017
US
$ b
illi
on
s
U.S. Exports to ChinaU.S. Imports from ChinaU.S. Surplus