In 2022, Arkansas achieved a 28% growth in goods exporting to China for a total value of $1.1 billion, showcasing a strong comeback after the state experienced an unusual decade-long slump in trade. This marked the second most substantial increase among Heartland states. Yet worsening U.S.-China relations and recent global trade complications have impacted once promising opportunities leading to the cancellation or delay of a combined total of $1.4 billion proposed investment by four Chinese companies. Arkansas however remains an attractive destination for foreign investment as the region is a major supply chain hub, with proximity to the offices of over three hundred Fortune 500 companies. Arkansas’ top employers, such as Walmart and Tyson, count China as major growth markets for their global businesses. The University of Arkansas offers a unique dual degree program in business administration with Soochow University in China. The state also has a rich Chinese American history, especially in the Delta region, which saw the state’s first Chinese restaurant open its doors in 1895. Little Rock welcomed back the annual Lanterns Festival which featured Chinese lanterns sponsored by the Arkansas Chinese-American Association (ACAA). State leaders of Arkansas have adopted a “tough on China” stance despite past efforts of the state to grow trade and business ties with China. In 2023 the state legislature passed a bill restricting property ownership by Chinese entities. Arkansas has ordered Northrup, a subsidiary of Syngenta Seeds, which is owned by the Chinese state-owned company China National Chemical Company to divest its agricultural land, the first Heartland state to take such action.

In 2022, Arkansas achieved a 28% growth in goods exporting to China for a total value of $1.1 billion, showcasing a strong comeback after the state experienced an unusual decade-long slump in trade. This marked the second most substantial increase among Heartland states.

As with many other Heartland states, Arkansas has been hard hit in its dealings with China due to both the 2018 trade war as well as the COVID-19 pandemic. During the trade war, Arkansas witnessed a 55% drop in its exporting to China from 2017 to 2018, with their top exports to China (oilseeds and grains, aerospace products and parts and miscellaneous crops) all nosediving during the dispute. Farmers across Arkansas witnessed significant drops in prices for crops like soybeans and cotton when China stopped buying American agricultural products. One survey estimated that nearly ⅓ of Arkansas’ companies imported steel and aluminum from China which were heavily tariffed by the U.S., negatively impacting their production. Moreover, the four Chinese companies slated to invest a combined total of $1.4B in the state as mentioned in our last report have witnessed major delays or terminations. Shandong Ruyi Technology Group’s proposed textile mill in Forrest City is an example of the kind of hurdles that Chinese FDI projects are facing; the U.S and China both imposed 25% tariffs on textile products, hampering the proposed mill which would need to both import textile machinery and then export its products to China, a situation only further stalled by pandemic-related complications.

Yet worsening U.S.-China relations and recent global trade complications have impacted once promising opportunities leading to the cancellation or delay of a combined total of $1.4 billion proposed investment by four Chinese companies. Arkansas however remains an attractive destination for foreign investment as the region is a major supply chain hub, with proximity to the offices of over three hundred Fortune 500 companies. Arkansas’ top employers, such as Walmart and Tyson, count China as major growth markets for their global businesses.

Despite recent difficulties, Arkansas nevertheless offers many opportunities for Chinese investment as evidenced by a Chinese delegation touring the state in July 2022, visiting with the local Chinese American community, and sitting down for trade talks with the Northwest Arkansas Council as well as several Fortune 500 Arkansas-based brands such as Walmart and Tyson. Northwestern Arkansas has many attractive qualities to potential Chinese investors, as the region acts as a major supply chain hub, with proximity to over 300 Fortune 500 companies which have established satellite operations in the area.

Little Rock welcomed back the annual Lanterns Festival which featured Chinese lanterns sponsored by the Arkansas Chinese-American Association (ACAA). State leaders of Arkansas have adopted a “tough on China” stance despite past efforts of the state to grow trade and business ties with China. In 2023 the state legislature passed a bill restricting property ownership by Chinese entities. Arkansas has ordered Northrup, a subsidiary of Syngenta Seeds, which is owned by the Chinese state-owned company China National Chemical Company to divest its agricultural land, the first Heartland state to take such action.

The University of Arkansas offers a unique dual degree program in business administration with Soochow University in China. The state also has a rich Chinese American history, especially in the Delta region, which saw the state’s first Chinese restaurant open its doors in 1895.

This data and content is updated periodically. The most recent update was January 2024.