Why China Matters to Kentucky
In 2022, Kentucky achieved a record-high of $3 billion in goods exported to China, a 9% YOY growth after a remarkable 48% expansion in 2021. Kentucky also enjoys robust two-way business relationships with China. Yum! Brands Inc., headquartered in Kentucky, has been very successful in China, notably with KFC becoming one of China’s leading fast-food chains, contributing 27% to global revenues. Yum! Brands celebrated the opening of its 500th KFC store in Shanghai in June 2023. Many Chinese companies and investors find Kentucky an attractive destination because of its strength and legacy as a regional manufacturing center as demonstrated by Chinese acquisitions of Kentucky-based GE Appliance ($5.6 billion acquisition by Haier Group in 2016) and Lexmark ($3.6 billion acquisition also in 2016). However, trade and investment faced obstacles in other areas, such as the suspension of a project in Hopkinsville, over concerns about the company’s alleged ties to China. The plan involved Microvast, a Texas-based electric vehicle battery manufacturer, intending to create 600 jobs locally. Following an investigation, the U.S. Department of Energy withdrew its $200 million grant to Microvast, halting the project. Kentucky’s educational exchanges with China are growing. Contrary to the regional trend, Kentucky’s population of Chinese international students actually grew by 54% for the 2022/2023 academic year. Since the University of Kentucky signed an inter-university exchange agreement with Jilin University in 2011, the partnership has grown to 6 dual-university degree programs from bachelor’s degrees to PhDs.
In 2022, Kentucky achieved a record-high of $3 billion in goods exported to China, a 9% YOY growth after a remarkable 48% expansion in 2021.
The slump Kentucky has experienced in exporting to China these past several years began at the start of the trade war with Kentucky’s exports to China dropping 28% from 2017 to 2018. This difficulty has only been further exacerbated by the effects of COVID-19, as Kentucky’s top export to China of aerospace products and parts has fluctuated wildly. Other industries were hurt as well; namely, Kentucky’s bourbon distilleries. While big producers were able to find ways of avoiding tariffs, small producers were slammed with second order effects of the steel and aluminum tariffs imposed by the U.S. against China.
Kentucky also enjoys robust two-way business relationships with China. Yum! Brands Inc., headquartered in Kentucky, has been very successful in China, notably with KFC becoming one of China’s leading fast-food chains, contributing 27% to global revenues. Yum! Brands celebrated the opening of its 500th KFC store in Shanghai in June 2023. Many Chinese companies and investors find Kentucky an attractive destination because of its strength and legacy as a regional manufacturing center as demonstrated by Chinese acquisitions of Kentucky-based GE Appliance ($5.6 billion acquisition by Haier Group in 2016) and Lexmark ($3.6 billion acquisition also in 2016).
Kentucky has similarly increased their outbound investments in China; in 2021, Kentucky Fried Chicken International (of YUM Brands) opened 2,400 new locations (approximately one new location every four hours) about 40% of which were in China. Concerns have been growing as to the over-picking of Appalachian roots such as ginseng, which are in high demand on Chinese markets (Appalachian-grown ginseng being sold for as much as $9,000 per pound). The story of a man in Jackson County illegally trafficking turtles to China to be sold as pets made the local papers.
Trade and investment faced obstacles however, such as the suspension of a project in Hopkinsville, over concerns about the company’s alleged ties to China. The plan involved Microvast, a Texas-based electric vehicle battery manufacturer, intending to create 600 jobs locally. Following an investigation, the U.S. Department of Energy withdrew its $200 million grant to Microvast, halting the project.
Kentucky’s educational exchanges with China are growing. Contrary to the regional trend, Kentucky’s population of Chinese international students actually grew by 54% for the 2022/2023 academic year. Since the University of Kentucky signed an inter-university exchange agreement with Jilin University in 2011, the partnership has grown to 6 dual-university degree programs from bachelor’s degrees to PhDs.
This data and content is updated periodically. The most recent update was January 2024.
In 2022, Kentucky achieved a record-high of $3 billion in goods exported to China, a 9% YOY growth after a remarkable 48% expansion in 2021. Kentucky also enjoys robust two-way business relationships with China. Yum! Brands Inc., headquartered in Kentucky, has been very successful in China, notably with KFC becoming one of China’s leading fast-food chains, contributing 27% to global revenues. Yum! Brands celebrated the opening of its 500th KFC store in Shanghai in June 2023. Many Chinese companies and investors find Kentucky an attractive destination because of its strength and legacy as a regional manufacturing center as demonstrated by Chinese acquisitions of Kentucky-based GE Appliance ($5.6 billion acquisition by Haier Group in 2016) and Lexmark ($3.6 billion acquisition also in 2016). However, trade and investment faced obstacles in other areas, such as the suspension of a project in Hopkinsville, over concerns about the company’s alleged ties to China. The plan involved Microvast, a Texas-based electric vehicle battery manufacturer, intending to create 600 jobs locally. Following an investigation, the U.S. Department of Energy withdrew its $200 million grant to Microvast, halting the project. Kentucky’s educational exchanges with China are growing. Contrary to the regional trend, Kentucky’s population of Chinese international students actually grew by 54% for the 2022/2023 academic year. Since the University of Kentucky signed an inter-university exchange agreement with Jilin University in 2011, the partnership has grown to 6 dual-university degree programs from bachelor’s degrees to PhDs.
In 2022, Kentucky achieved a record-high of $3 billion in goods exported to China, a 9% YOY growth after a remarkable 48% expansion in 2021.
The slump Kentucky has experienced in exporting to China these past several years began at the start of the trade war with Kentucky’s exports to China dropping 28% from 2017 to 2018. This difficulty has only been further exacerbated by the effects of COVID-19, as Kentucky’s top export to China of aerospace products and parts has fluctuated wildly. Other industries were hurt as well; namely, Kentucky’s bourbon distilleries. While big producers were able to find ways of avoiding tariffs, small producers were slammed with second order effects of the steel and aluminum tariffs imposed by the U.S. against China.
Kentucky also enjoys robust two-way business relationships with China. Yum! Brands Inc., headquartered in Kentucky, has been very successful in China, notably with KFC becoming one of China’s leading fast-food chains, contributing 27% to global revenues. Yum! Brands celebrated the opening of its 500th KFC store in Shanghai in June 2023. Many Chinese companies and investors find Kentucky an attractive destination because of its strength and legacy as a regional manufacturing center as demonstrated by Chinese acquisitions of Kentucky-based GE Appliance ($5.6 billion acquisition by Haier Group in 2016) and Lexmark ($3.6 billion acquisition also in 2016).
Kentucky has similarly increased their outbound investments in China; in 2021, Kentucky Fried Chicken International (of YUM Brands) opened 2,400 new locations (approximately one new location every four hours) about 40% of which were in China. Concerns have been growing as to the over-picking of Appalachian roots such as ginseng, which are in high demand on Chinese markets (Appalachian-grown ginseng being sold for as much as $9,000 per pound). The story of a man in Jackson County illegally trafficking turtles to China to be sold as pets made the local papers.
Trade and investment faced obstacles however, such as the suspension of a project in Hopkinsville, over concerns about the company’s alleged ties to China. The plan involved Microvast, a Texas-based electric vehicle battery manufacturer, intending to create 600 jobs locally. Following an investigation, the U.S. Department of Energy withdrew its $200 million grant to Microvast, halting the project.
Kentucky’s educational exchanges with China are growing. Contrary to the regional trend, Kentucky’s population of Chinese international students actually grew by 54% for the 2022/2023 academic year. Since the University of Kentucky signed an inter-university exchange agreement with Jilin University in 2011, the partnership has grown to 6 dual-university degree programs from bachelor’s degrees to PhDs.
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
$1.6 Billion
Highest Year on Record
Goods Exporting to China
2017
% State Global Exporting to china
9%
of Goods Exports 2022
8%
of Service Exports 2021
State Ranking in Heartland
#11
In Total Goods Exports Value 2022
#14
In Total Service Exports Value 2021
State Ranking in U.S.
#20
In Total Goods Exports Value 2022
#31
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
$1.6 Billion
Highest Year on Record
Goods Exporting to China
2017
% State global exporting to china
9%
of Goods Exports 2022
7%
of Service Exports 2021
State Ranking in Heartland
#11
In Total Goods Exports Value 2022
#14
In Total Service Exports Value 2021
State Ranking in U.S.
#20
In Total Goods Exports Value 2022
#31
In Total Service Exports Value 2021
Partnership
Sister Cities
- Louisville/Chengdu & Jiujang
- Morehead/Yangshuo
Sister Partnership
Kentucky
Jiangxi
Export Details
2022
Goods Exports
$3 Billion
(USCBC Export Report 2023) +9%
1
Aerospace Products & Parts ($1.1B)
+10%
2
Oil Seeds & Grains ($465M)
+18%
3
Resins & Synthetic Fibers ($178M)
+53%
2021
Service Exports
$215 Million
(USCBC Export Report 2023) -6%
1
Education ($83M)
-31%
2
Royalties from Industrial Processes ($29M)
+3%
3
Trademark Royalties ($19M)
+11%
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Jobs
15,620
Jobs supported by exports to China in 2021 (USCBC Export Report 2023)
10,000
Jobs supported by Chinese companies (NCUSR Rhodium Group 2018)
+28
Chinese companies operating in-state (NCUSR Rhodium Group 2018)
1
GE Appliance Park 6000+ jobs
2
Lexmark 1600+ jobs
3
Smithfield Foods 1,200 jobs
Education
(IIE Open Doors 2023)
Top educational Institutions with chinese enrollment
- University of Kentucky
- University of Louisville
- Northern Kentucky University
1,142
Estimated number of Chinese International Students in-State
$83 MilliON
Estimated revenue added by Chinese International Students (USCBC Export Report 2022)
Chinese-American Population
12,715
(APIAVote 2022)
Goods Exporting
At $1.1 billion, Kentucky led the Heartland Region in exporting Aerospace Products & Parts to China in 2022
$9.5 Billion
Chinese Foreign Direct Investment from 1990-2020
(Rhodium Group’s US-China Investment Hub)
Some data is not visible on mobile devices and some tablets. To see all available data please view on a high resolution full size tablet or a desktop/laptop computer.
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.”