Louisiana plays a significant role in American energy exports to China as the state has emerged as the center of the liquefied natural gas (LNG) export boom. In the past two years, Louisiana’s sales of oil and gas to China quadrupled as its overall goods exports to China reached $4.1 billion in 2021, which is over double the 2008-2017 average and the highest year on record for export revenue. Louisiana is well positioned for further trade expansion now that the dredging of a key 250-mile stretch at the mouth of the Mississippi river to greater depths to accommodate larger vessels with higher capacity has been completed. Three major American producers of LNG with operations based in Louisiana also signed numerous Sale and Purchase Agreements (SPAs) with Chinese companies over the past two years. Chinese companies are also contributing to the growth in this region in other ways. In the Port of New Orleans, four electric gantry cranes manufactured by Shanghai Zhenhua Heavy Industries were installed in 2021. Prior to the pandemic, the state also attracted many Chinese visitors to its cultural centers such as New Orleans. Many of Louisiana’s universities have well established exchange programs with Chinese universities.

These few years have seen trade between Louisiana and China skyrocketing, with 2021 being the highest year on record for goods exported. Goods exporting to China grew by 17% in 2021 for a total of $4.1 billion, over double the 2008-2017 average of $1.9 billion. As a result of the COVID-19 pandemic, service exports from Louisiana to China fell by -36%.

This growth stands in stark contrast to the low of $1.5 billion in 2019, amidst the trade war. The 25% tariff imposed by China on soybeans sideswept Louisiana as China has historically bought 60% of the state’s crop; this hit soybean producers hard, many reporting that government bailouts did not cover the losses, with smaller farms suffering the most. Ports also felt the pain, as falling shipments of steel and other commodities saw bulk cargo volumes dropping by 25% at the Port of New Orleans in 2019. The chemicals industry (of which Louisiana second largest exporting state) was also hurt by the trade war; to illustrate, two Chinese chemical firms spending billions to build factories in Louisiana were slammed by both Chinese and American tariffs.

The primary cause of the increase in trade recently is owing to Louisiana’s expanded exporting of oil and gas, sales of which have increased by a factor of 384% over the past two years. This expansion is owed in part to China’s commitment to increase energy imports from the U.S.–including LNG–as part of the phase one trade agreement signed in 2020. In 2021 China overtook Japan as the world’s top LNG buyer. Over the past two years, three major American producers of LNG with operations based in Louisiana signed numerous SPAs (sale and purchase agreements) with Chinese companies accounting for millions of tonnes per annum, supporting both existing operations as well as proposed projects in the state such as export facilities like Venture Global’s in Plaquemines Parish and Energy Transfer’s in Lake Charles.

The first phase of the project to dredge the Mississippi river’s initial 250 miles to greater depths (enabling ships to carry 2.9 million bushels compared to the current 2.4 million–expected to bring an additional $461 billion in sales to the U.S. soybean industry) has been completed (second phase upcoming), securing the primacy of Louisiana’s ports. The Tulane U.S.-China Energy and Traw Law Forum was hosted in October 2022, dedicated in part to the growing relationship between China and Louisiana.

China ranks as Louisiana’s leading place of origin for international students in 2022, with an estimated 1,206 students in attendance. This marks an estimated -23% decrease in enrollment of Chinese students from 2021 to 2022, and a -26% decrease from 2020 to 2022. Many of Louisiana’s universities have well established exchange programs with Chinese universities.

This data and content is updated periodically. The most recent update was January 2023.