Why China Matters to Alabama
Alabama has enjoyed a steady trade relationship with China since 1979 and was the first southern state to establish a sister state/province relationship with China in 1985. In 2022, Alabama’s goods exports to China grew by 3%, reaching $3.2 billion, which is consistent with its annual average around $3 billion in goods export to China the past decade. Unlike many other Heartland states whose top export to China is agricultural goods, Alabama’s top export category to China is motor vehicles. In fact, Alabama led the Heartland states in the number of cars shipped to China thanks to the strong manufacturing presence of global automakers such as Mercedes-Benz, Honda, Hyundai, and Toyota. Alabama has had some success attracting Chinese investments. The largest of them is the $100 million factory investment by Golden Dragon Copper in Wilcox County in 2014. Despite a strong history of education exchanges between Alabama’s universities and their counterparts in China, such as the “Auburn Garden” jointly built by Hubei Academy of Agricultural Sciences and Auburn University in 1988, the pandemic and recent U.S.-China tensions have significantly impacted educational exchanges, as evidenced by declining Chinese student enrollment and student visa issuance. Like many other Heartland states, more politicians in Alabama have adopted a “tough on China” stance than in the past. Governor Ivey signed a House Bill prohibiting foreign entities, including China, from acquiring agricultural property. Additionally, following a national trend, Alabaman wireless carriers have been directed to replace Chinese telecom equipment with American alternatives.
Alabama has enjoyed a steady trade relationship with China since 1979 and was the first southern state to establish a sister state/province relationship with China in 1985. In 2022, Alabama’s goods exports to China grew by 3%, reaching $3.2 billion, which is consistent with its annual average around $3 billion in goods export to China the past decade.
During the trade war Alabama experienced only a comparably modest 16% drop in its exporting to China, despite Chinese tariffs raising prices on nearly ⅔ of all of its portfolio, though U.S. global tariffs on steel and aluminum have had an impact on top Alabama industries such as auto parts manufacturers, aerospace parts manufacturers, craft breweries, metal fabricators, and construction firms.
Unlike many other Heartland states whose top export to China is agricultural goods, Alabama’s top export category to China is motor vehicles. In fact, Alabama led the Heartland states in the number of cars shipped to China thanks to the strong manufacturing presence of global automakers such as Mercedes-Benz, Honda, Hyundai, and Toyota. Alabama has had some success attracting Chinese investments. The largest of them is the $100 million factory investment by Golden Dragon Copper in Wilcox County in 2014.
U.S. solar panel manufacturer First Solar Inc. announced in November 2022 plans for a factory in Alabama, a $1.1 billion investment–the company’s usage of cadmium telluride products has made it a popular alternative to U.S. solar project developers as the domestic industry pulls away from China, given that it does not rely on polysilicon a raw material primarily made in China.
Like many other Heartland states, more politicians in Alabama have adopted a “tough on China” stance than in the past. Governor Ivey signed a House Bill prohibiting foreign entities, including China, from acquiring agricultural property. Additionally, following a national trend, Alabaman wireless carriers have been directed to replace Chinese telecom equipment with American alternatives.
Despite a strong history of education exchanges between Alabama’s universities and their counterparts in China, such as the “Auburn Garden” jointly built by Hubei Academy of Agricultural Sciences and Auburn University in 1988, the pandemic and recent U.S.-China tensions have significantly impacted educational exchanges, as evidenced by declining Chinese student enrollment and student visa issuance.
This data and content is updated periodically. The most recent update was January 2024.
Alabama has enjoyed a steady trade relationship with China since 1979 and was the first southern state to establish a sister state/province relationship with China in 1985. In 2022, Alabama’s goods exports to China grew by 3%, reaching $3.2 billion, which is consistent with its annual average around $3 billion in goods export to China the past decade. Unlike many other Heartland states whose top export to China is agricultural goods, Alabama’s top export category to China is motor vehicles. In fact, Alabama led the Heartland states in the number of cars shipped to China thanks to the strong manufacturing presence of global automakers such as Mercedes-Benz, Honda, Hyundai, and Toyota. Alabama has had some success attracting Chinese investments. The largest of them is the $100 million factory investment by Golden Dragon Copper in Wilcox County in 2014. Despite a strong history of education exchanges between Alabama’s universities and their counterparts in China, such as the “Auburn Garden” jointly built by Hubei Academy of Agricultural Sciences and Auburn University in 1988, the pandemic and recent U.S.-China tensions have significantly impacted educational exchanges, as evidenced by declining Chinese student enrollment and student visa issuance. Like many other Heartland states, more politicians in Alabama have adopted a “tough on China” stance than in the past. Governor Ivey signed a House Bill prohibiting foreign entities, including China, from acquiring agricultural property. Additionally, following a national trend, Alabaman wireless carriers have been directed to replace Chinese telecom equipment with American alternatives.
Alabama has enjoyed a steady trade relationship with China since 1979 and was the first southern state to establish a sister state/province relationship with China in 1985. In 2022, Alabama’s goods exports to China grew by 3%, reaching $3.2 billion, which is consistent with its annual average around $3 billion in goods export to China the past decade.
During the trade war Alabama experienced only a comparably modest 16% drop in its exporting to China, despite Chinese tariffs raising prices on nearly ⅔ of all of its portfolio, though U.S. global tariffs on steel and aluminum have had an impact on top Alabama industries such as auto parts manufacturers, aerospace parts manufacturers, craft breweries, metal fabricators, and construction firms.
Unlike many other Heartland states whose top export to China is agricultural goods, Alabama’s top export category to China is motor vehicles. In fact, Alabama led the Heartland states in the number of cars shipped to China thanks to the strong manufacturing presence of global automakers such as Mercedes-Benz, Honda, Hyundai, and Toyota. Alabama has had some success attracting Chinese investments. The largest of them is the $100 million factory investment by Golden Dragon Copper in Wilcox County in 2014.
U.S. solar panel manufacturer First Solar Inc. announced in November 2022 plans for a factory in Alabama, a $1.1 billion investment–the company’s usage of cadmium telluride products has made it a popular alternative to U.S. solar project developers as the domestic industry pulls away from China, given that it does not rely on polysilicon a raw material primarily made in China.
Like many other Heartland states, more politicians in Alabama have adopted a “tough on China” stance than in the past. Governor Ivey signed a House Bill prohibiting foreign entities, including China, from acquiring agricultural property. Additionally, following a national trend, Alabaman wireless carriers have been directed to replace Chinese telecom equipment with American alternatives.
Despite a strong history of education exchanges between Alabama’s universities and their counterparts in China, such as the “Auburn Garden” jointly built by Hubei Academy of Agricultural Sciences and Auburn University in 1988, the pandemic and recent U.S.-China tensions have significantly impacted educational exchanges, as evidenced by declining Chinese student enrollment and student visa issuance.
This data and content is updated periodically. The most recent update was January 2024.
Exports
China's Ranking
In State's Global Trading Partners 2022
#3
Decade Average
Goods Exporting to China
2008-2017 Pre-Trade War
$2.3 Billion
Highest Year on Record
Goods Exporting to China
2017
% State Global Exporting to china
12%
of Goods Exports 2022
7%
of Service Exports 2021
State Ranking in Heartland
#9
In Total Goods Exports Value 2022
#12
In Total Service Exports Value 2021
State Ranking in U.S.
#16
In Total Goods Exports Value 2022
#18
In Total Service Exports Value 2021
China's Ranking
In State's Global Trading Partners 2022
#3
Decade Average
Goods Exporting to China
2008-2017 Pre-Trade War
$2.3 Billion
Highest Year on Record
Goods Exporting to China
2017
% State global exporting to china
12%
of Goods Exports 2022
7%
of Service Exports 2021
State Ranking in Heartland
#9
In Total Goods Exports Value 2022
#12
In Total Service Exports Value 2021
State Ranking in U.S.
#16
In Total Goods Exports Value 2022
#28
In Total Service Exports Value 2021
Partnership
Sister Cities
- Birmingham/Anshan & Chaoyang District (Beijing)
- Mobile/Tianjin & Heze
Sister Partnership
Alabama
Hubei
Export Details
2021
Goods Exports
$3.2 Billion
(USCBC Export Report 2023) +3%
1
Motor Vehicles ($1.9B)
+11%
2
Resins & Synthetic Fibers ($216M)
-15%
3
Basic Chemicals ($213M)
-.9%
2020
Service Exports
$286 Million
(USCBC Export Report 2023) +0%
1
Education ($87M)
-11%
2
Royalties from Industrial Processes ($35M)
+0%
3
Misc. Financial Services ($21M)
-8%
blank
Jobs
14,120
Jobs supported by exports to China in 2021 (USCBC Export Report 2023)
2,250
Jobs supported by Chinese companies (NCUSR Rhodium Group 2018)
+70
Chinese companies operating in-state (NCUSR Rhodium Group 2018)
1
Continental Motors 430 jobs
2
GD Copper 340 jobs
3
Shandong Swan
Education
(IIE Open Doors 2023)
Top educational Institutions with chinese enrollment
- Auburn University – Auburn
- University of Alabama – Birmingham
- University of Alabama – Tuscaloosa
1,723
Estimated number of Chinese International Students in-state
$87 Million
Estimated revenue added by Chinese International Students (USCBC Export Report 2022)
Chinese-American Population
15,556
(APIAVote 2022)
Goods Exporting
Motor Vehicles accounted for 59% of Alabama’s total goods exporting to China in 2022
$459 million
Chinese Foreign Direct Investment from 1990-2020
(Rhodium Group’s US-China Investment Hub)
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For the states’ trade statistics: USCBC Export Report 2023.
For information relating to Chinese companies operating in-state: Rhodium Group and National Committee on U.S. China Relations’ “New Neighbors: 2018 Update”.
For information relating to Chinese international students: Open Doors’ 2023 Annual Data.
For the population of Chinese Americans in-state: APIAVote’s “2022 AAPI Voter Demographics by State”
For FDI: Rhodium Group’s US-China Investment Hub.
For sister city relationship information: Asia Matters for America by the East-West Center.
For foreign land ownership legislation: Mykel R. Taylor, Wendong Zhang, and Festus Attah. 2023. “Foreign Interests in U.S. Agricultural Lands: The Missing Conversations about Leasing.”