Why China Matters to South Dakota
South Dakota’s trade with China has more than quadrupled since its lowest point at the height of the U.S.-China trade war in 2018. The $1.4 billion worth of goods exported to China in 2022 marked a significant increase from the 2008-2017 average of $712 million. Almost a third of the state’s global goods exports is going to China, a primary export market for South Dakota. Beyond agriculture, businesses in South Dakota are eyeing the Chinese market for potential export expansion, especially around manufacturing. Smithfield, acquired for close to $5 billion in 2013 by Chinese company Shuanghui, is the second-largest employer in South Dakota. It continues to contribute significantly to the local economy as well as South Dakota’s export of pork, the main animal protein consumed in China. But shifts in political attitudes are taking hold. Despite unrealized plans for a state-level Committee on Foreign Investment, South Dakota lawmakers continue pushing bills aimed at curbing Chinese influence in the agricultural sector. Governor Noem signed a bill into law that bans “evil foreign governments,” China included, from contracting with South Dakota governments. Though the Chinese American population is small in the state, the history of early thriving Chinese American communities in the Black Hills is still celebrated each Chinese New Year.
South Dakota’s trade with China has more than quadrupled since its lowest point at the height of the U.S.-China trade war in 2018. The $1.4 billion worth of goods exported to China in 2022 marked a significant increase from the 2008-2017 average of $712 million. Almost a third of the state’s global goods exports is going to China, a primary export market for South Dakota. Beyond agriculture, businesses in South Dakota are eyeing the Chinese market for potential export expansion, especially around manufacturing.
Trade exports between South Dakota and China have managed to stabilize at levels approximate to those South Dakota enjoyed prior to the trade war; such that South Dakota’s trade with China has surged by a factor of 400% since its lowest point in 2018. The effects of the trade war hit the state with particular severity due to the agricultural tariffs and subsequent slowing of soybean sales to China, given that oilseeds and grains account for 90% of South Dakota’s total exporting to China. In fact, the Dakotas were hit the hardest by the trade war of any Heartland states as a result of the soybean cutoff, with both states’ total exporting taking a 70% loss from 2017 to 2018.
Smithfield, acquired for close to $5 billion in 2013 by Chinese company Shuanghui, is the second-largest employer in South Dakota. It continues to contribute significantly to the local economy as well as South Dakota’s export of pork, the main animal protein consumed in China.
Despite renewed trade, the political landscape in recent years has been rocky; in 2021 a South Dakota Senator helped introduce a bill to Congress targeting China in an anti-dumping law. The bill has currently not made progress. In addition, another South Dakota Senator proposed in August of 2022 a bill banning China and three other countries from purchasing or investing in agricultural land in the U.S., joining a recent wave of anti-Chinese land legislation in the Heartland.
But shifts in political attitudes are taking hold. Despite unrealized plans for a state-level Committee on Foreign Investment, South Dakota lawmakers continue pushing bills aimed at curbing Chinese influence in the agricultural sector. Governor Noem signed a bill into law that bans “evil foreign governments,” China included, from contracting with South Dakota governments.
Less than an estimated 100 Chinese international students studied in South Dakota during the 2022/2023 Academic calendar year.
This data and content is updated periodically. The most recent update was January 2024.
South Dakota’s trade with China has more than quadrupled since its lowest point at the height of the U.S.-China trade war in 2018. The $1.4 billion worth of goods exported to China in 2022 marked a significant increase from the 2008-2017 average of $712 million. Almost a third of the state’s global goods exports is going to China, a primary export market for South Dakota. Beyond agriculture, businesses in South Dakota are eyeing the Chinese market for potential export expansion, especially around manufacturing. Smithfield, acquired for close to $5 billion in 2013 by Chinese company Shuanghui, is the second-largest employer in South Dakota. It continues to contribute significantly to the local economy as well as South Dakota’s export of pork, the main animal protein consumed in China. But shifts in political attitudes are taking hold. Despite unrealized plans for a state-level Committee on Foreign Investment, South Dakota lawmakers continue pushing bills aimed at curbing Chinese influence in the agricultural sector. Governor Noem signed a bill into law that bans “evil foreign governments,” China included, from contracting with South Dakota governments. Though the Chinese American population is small in the state, the history of early thriving Chinese American communities in the Black Hills is still celebrated each Chinese New Year.
South Dakota’s trade with China has more than quadrupled since its lowest point at the height of the U.S.-China trade war in 2018. The $1.4 billion worth of goods exported to China in 2022 marked a significant increase from the 2008-2017 average of $712 million. Almost a third of the state’s global goods exports is going to China, a primary export market for South Dakota. Beyond agriculture, businesses in South Dakota are eyeing the Chinese market for potential export expansion, especially around manufacturing.
Trade exports between South Dakota and China have managed to stabilize at levels approximate to those South Dakota enjoyed prior to the trade war; such that South Dakota’s trade with China has surged by a factor of 400% since its lowest point in 2018. The effects of the trade war hit the state with particular severity due to the agricultural tariffs and subsequent slowing of soybean sales to China, given that oilseeds and grains account for 90% of South Dakota’s total exporting to China. In fact, the Dakotas were hit the hardest by the trade war of any Heartland states as a result of the soybean cutoff, with both states’ total exporting taking a 70% loss from 2017 to 2018.
Smithfield, acquired for close to $5 billion in 2013 by Chinese company Shuanghui, is the second-largest employer in South Dakota. It continues to contribute significantly to the local economy as well as South Dakota’s export of pork, the main animal protein consumed in China.
Despite renewed trade, the political landscape in recent years has been rocky; in 2021 a South Dakota Senator helped introduce a bill to Congress targeting China in an anti-dumping law. The bill has currently not made progress. In addition, another South Dakota Senator proposed in August of 2022 a bill banning China and three other countries from purchasing or investing in agricultural land in the U.S., joining a recent wave of anti-Chinese land legislation in the Heartland.
But shifts in political attitudes are taking hold. Despite unrealized plans for a state-level Committee on Foreign Investment, South Dakota lawmakers continue pushing bills aimed at curbing Chinese influence in the agricultural sector. Governor Noem signed a bill into law that bans “evil foreign governments,” China included, from contracting with South Dakota governments.
Less than an estimated 100 Chinese international students studied in South Dakota during the 2022/2023 Academic calendar year.
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
#1
Decade Average
Goods Exporting to China
2008-2017 Pre-Trade War
$712 Million
Highest Year on Record
Goods Exporting to China
2022
% State Global Exporting to china
28%
of Goods Exports 2022
5%
of Service Exports 2021
State Ranking in Heartland
#16
In Total Goods Exports Value 2022
#19
In Total Service Exports Value 2021
State Ranking in U.S.
#28
In Total Goods Exports Value 2022
#42
In Total Service Exports Value 2021
China's Ranking
In State's Global Trading Partners 2022
#1
Decade Average
Goods Exporting to China
2008-2017 Pre-Trade War
$712 Million
Highest Year on Record
Goods Exporting to China
2022
% State global exporting to china
28%
of Goods Exports 2022
5%
of Service Exports 2021
State Ranking in Heartland
#16
In Total Goods Exports Value 2022
#19
In Total Service Exports Value 2021
State Ranking in U.S.
#28
In Total Goods Exports Value 2022
#42
In Total Service Exports Value 2021
Partnership
Sister Cities
South Dakota has no sister cities in China.
Sister Partnership
South Dakota currently does not have a sister state relationship with a province of China.
South Dakota
Heilongjiang
Export Details
2022
Goods Exports
$1.4 Billion
(USCBC Export Report 2023) +14%
1
Oil Seeds & Grains ($1.2B)
+9%
2
Dairy Products ($30M)
+130%
3
Medical Equipment & Supplies ($24M)
+41%
2021
Service Exports
$90 Million
(USCBC Export Report 2023) -1%
1
Credit-Related Services ($28M)
+3%
2
Misc. Financial Services ($25M)
-10%
3
Education ($11M)
-8%
blank
Jobs
11,890
Jobs supported by exports to China in 2021 (USCBC Export Report 2023)
3,400
Jobs supported by Chinese companies (NCUSR Rhodium Group 2018)
+2
Chinese companies operating in-state (NCUSR Rhodium Group 2018)
1
Information not available
2
Information not available
3
Information not available
Education
(IIE Open Doors 2023)
Top educational Institutions with chinese enrollment
- South Dakota State University
- University of South Dakota-Vermillion
- South Dakota School of Mines and Technology
<100
Estimated number of Chinese International Students in-state
$11 Million
Estimated revenue added by Chinese International Students (USCBC Export Report 2023)
Chinese-American Population
2,080
(APIAVote 2022)
Goods Exporting
At 28%, South Dakota shipped the greatest portion of its total global exporting to China of any Heartland state
<$50 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.”