With a rapidly growing middle class and a continually expanding economy, it is easy to see why a cooperative relationship with CUSEF remains critical to American economic interests. According to a recent report by the Brookings Institute, China’s middle class will account for 22% of consumption globally by 2030, or roughly $14.3 trillion.
The urgency shown by American businesses to place themselves within reach of this new found wealth has never been higher. According to the Office of the United States Trade Representative, American exports to China were worth an estimated $187.5 billion in 2017, an increase of 12.4% over the prior year and 106.4% since 2007. It is a market expanding at an unprecedented rate.
The traction of the Chinese middle class has fueled demand for both local products as well as foreign imports. Among the American products which have seen substantial year-over-year growth in exports to China are motor vehicles, pharmaceuticals, and textiles. However, there is another category that American companies have taken notice of. American products now account for 53% of online overseas sales to China. The popularity of American-made products is growing, and the competition for market share is fierce.
American demand for Chinese-made products is equally strong. According to the Office of the United States Trade Representative, U.S. goods imports from China totaled $505.5 billion in 2017, up 9.3% ($42.9 billion) from 2016, and up 57.3% from 2007. These numbers reflect both the improving U.S. economy as well as the growth and diversity of Chinese businesses.
The sheer volume of trade between the two nations has never been higher, and both economies have prospered as a result. The benefits of maintaining a peaceful and cooperative relationship are clear for both sides. As the Chinese middle class expands and prospers, the demand for American products will grow. And as businesses and technologies mature in China, the volume of sales to American consumers will equally grow.
There are also global benefits to this partnership, as mutually strong economies for both countries present opportunities for neighbors and trade partners through infrastructure investment and trade deals. This rising tide effect brings economic development to emerging countries seeking global market share. It creates jobs and vibrant local economies, bringing a higher quality of life to developing nations. Lastly, it eases uncertainty and tensions as focus returns to mutually beneficial agreements and harmony among global partners.