Indiana’s goods export to China reached a record-high in 2022 —$5.2 billion—more than double the pre-trade war decade average of $2.3 billion. Notably, Indiana’s oilseeds and grains exports to China alone hit $1.7 billion in 2022, thanks to the persistent efforts of trade associations such as the Indiana Soybean Association. Many Indiana-headquartered global corporations, such as Cummins and Eli Lilly, have benefited from their investment in China. Chinese investments in Indiana are also slowly growing, such as Nanshan America, which invested more than $100 million in its Indiana aluminum extrusion facility. Chinese fashion retailer SHEIN is among the latest new arrivals. Until very recently, the America China Society of Indiana (ACSI) had helped the state cultivate a strong sister state/province relationship with Zhejiang Province, which started in 1987. Indiana also boasts a remarkable 12 sister city pairs with China, including the newest pair of sister cities: Carmel Indiana and Xiangyang, Hubei. Mayor Jim Brainard of Carmel, the vice chair of USHCA’s Board, led a historic Heartland Mayors Delegation to China in November to meet their counterparts in China to explore opportunities for city-to-city collaborations around energy transition, climate mitigation, and green economy. At the state level, however, Indiana’s political landscape reflects growing caution towards China, as evidenced by the 2023 passage of Senate Bill 268, directing the Indiana Public Retirement System to divest pension investments in the Chinese government within five years. Indiana was the first state to take action in the recent trend of the China-targeted restricting of foreign land ownership in 2022 with Senate Bill 388.

Indiana’s goods export to China reached a record-high in 2022 —$5.2 billion—more than double the pre-trade war decade average of $2.3 billion. Notably, Indiana’s oilseeds and grains exports to China alone hit $1.7 billion in 2022, thanks to the persistent efforts of trade associations such as the Indiana Soybean Association.

This is a significant jump from the past decade’s average of $2.4 billion from 2009-2019, and the recent low in 2018 of $2.2 billion as a consequence of the trade war, which saw Indiana’s exporting to China drop 29% from 2017 to 2018. As both a major agricultural and manufacturing state, Indiana was doubly hit. Indiana’s manufacturing companies suffer under tariffs forcing them to pay more for their component parts, with extra costs either falling on consumers or cutting into their profit margins. To further illustrate: Telamon Corp, a company which makes component parts for companies like Ford and AT&T had a 30% spike in Chinese component import prices at the time.

Many Indiana-headquartered global corporations, such as Cummins and Eli Lilly, have benefited from their investment in China. Chinese investments in Indiana are also slowly growing, such as Nanshan America, which invested more than $100 million in its Indiana aluminum extrusion facility. Chinese fashion retailer SHEIN is among the latest new arrivals.

Business with China continues apace in Indiana. At the 2022 Indiana Global Economic Summit, Chinese Ambassador to the U.S. Qin Gang spoke of Indiana as a major player in the production of agricultural, pharmaceutical, and automotives products, all of which China has an increasing need for. The America China Society of Indiana (ACSI), an organization which works to strengthen business ties as well as fostering cultural respect, has been active in 2022, hosting a Chinese sub-national delegation visiting Indiana for the previously mentioned Global Economic Summit. ACSI furthermore utilized the Indiana-Zhejiang sister city connection to host the 2022 US-China Virtual Business Exhibition: Huzhou City, with eight Huzhou-based companies presenting their U.S. business interests. Chinese fashion retailer SHEIN announced plans in April of 2021 to establish a 650,000-square-foot distribution center in Whitestown, making it the primary Midwestern hub. China-based food additive company Layn Corp invested $80 million to build Hemprise Inc.’s new CBD facility in Jeffersonville. Despite such promising efforts in trade and investments, turbulent rhetoric looms; recently, Indiana passed two bills relating to curbing Chinese involvement in the state. On April 29th 2021, House Bill 1549 was signed into law aimed at preventing Indiana universities from leaking classified information to China, this followed by the closing of The Confucius Institute at Valparaiso University after a civil investigation was launched to determine if it was “promoting communist propaganda”. Senate Bill 388 was signed into law on March 18th 2022, which prevents foreign business entities from acquiring agricultural land in the state. This bill comes amidst a wave of concern over China buying land in the U.S.; as of 2019, China, Russia, and Iran combined accounted for 0.7% of all foreign-owned agricultural land. In November 2022, 2 Indiana residents were arrested for allegedly conspiring to sell U.S. military secrets to China. Indiana’s Governor Eric Holcomb visited Taiwan in August 2022, stirring tensions.

Mayor Jim Brainard of Carmel, the vice chair of USHCA’s Board, led a historic Heartland Mayors Delegation to China in November to meet their counterparts in China to explore opportunities for city-to-city collaborations around energy transition, climate mitigation, and green economy. At the state level, however, Indiana’s political landscape reflects growing caution towards China, as evidenced by the 2023 passage of Senate Bill 268, directing the Indiana Public Retirement System to divest pension investments in the Chinese government within five years. Indiana was the first state to take action in the recent trend of the China-targeted restricting of foreign land ownership in 2022 with Senate Bill 388.

An estimated 5,454 Chinese international students are studied in Indiana in the 2022/2023 academic year. The Confucius Institute at Valparaiso University closed March 1^st, 2022.

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