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• U.S. high-tech goods exports to China more than doubled between 2001 and 2007, rising from $5.7 billion to $14.5 billion.
• Only the United States’ two NAFTA partners, Canada and Mexico, are larger export destinations for American tech products than China.
• Between 2001 and 2007, U.S. high-tech goods imports from China rose from $26 billion to $112 billion.
• Total U.S. direct investment in China was $22.2 billion in 2006, a 30 percent increase over 2005.
• China must pursue fair and responsible trade policies to avoid straining the U.S.-China relationship. This includes fair exchange rate policy, respect for intellectual property rights (IPR), complete WTO compliance, and acceptance of international standards.
• Public policy in both the United States and China must recognize the interdependent nature of our economies and avoid protectionism and distorting trade practices. Such policies restrain trade, damage economies, and raise prices for consumers.

We are delighted to bring you the 23rd regular installment of the AeA Competitiveness Series.  The AeA research team produces these reports on the most timely and relevant issues to the high-tech industry and to U.S. competitiveness in a global economy.  We combine rigorous data with careful analysis to provide industry leaders and policymakers the information they need to assess the issue.