Michigan is one of the only Heartland states with two Chinese sister provinces, Sichuan and Guangdong, both strong bases for Chinese automotive industry. In 2021 Michigan’s export to China grew 13% for a total value of $3.2 billion despite an 82% drop in exports of motor vehicles, attributable in part to the trade war. The Michigan-China business relationship had blossomed around the automotive industry until recently. GM and Ford, headquartered in Michigan, have been very successful in China with growing share of their revenue coming from China. Chinese automotive suppliers have also found success in Michigan. One of the latest new arrivals is the Chinese electric-vehicle battery maker Gotion High-Tech Co., which plans to build its first major American factory in the state. Many universities in Michigan have exchange programs with their peers in China. Among them, the University of Michigan holds great historical importance in U.S.-China relations. It welcomed its first Chinese students in 1892 and has educated generations of leaders in the U.S.-China Relations space. It was also the first stop on the 9-city tour of the Chinese Ping-Pong team in 1972, in a series of events that later became known as “Ping-Pong Diplomacy”, for which a 50th anniversary celebration was held at the University of Michigan in 2022. 

Michigan has benefitted from steady and consistent high-value trade with China for many years, with over $3 billion in goods exports annually since 2012 with a high in 2014 of $4.5 billion. 2021 witnessed an increase of 13% in goods exports to China, for a total value of $3.2 billion comparable to the 2008-2017 average of $3.1 billion. As a result of the COVID-19 pandemic, service exports from Michigan to China fell by -34%.

Michigan’s diverse agricultural exports to China were hit during the trade war including products like dairy, apples, and cherries. Broad global tariffs on steel during the trade war impacted steel consumers like Michigan’s auto industry–all three Detroit automakers, General Motors, Ford, and Fiat Chrysler Automobiles NV closed a plant between January 2018 and 2020. Such difficulties were further exacerbated by constrained trade with China and heavy Chinese tariffs on U.S. autos; in 2018, China accounted for 44% of General Motors’s total vehicle sales which declined during the trade war; Ford similarly reported heavy losses in exporting of autos to China such as declining purchasing of Lincoln vehicles which has been a popular brand. To illustrate, the U.S. exported 163,618 vehicles to China in 2018, down from the high in 2014 of 314,580.

The slight slump in recent years is owed in part to the decline in the exporting of motor vehicles, which accounted for $1.3 billion in exports in 2019 and just $228 million in 2021. Michigan’s decline in exporting of motor vehicles to China parallels a larger decline in automobile manufacturing as the state made 280k fewer cars due to the semiconductor shortage in 2021 relating to the COVID-19 pandemic. Nevertheless, Michigan remains one of the main targets of China investments in industries like electromagnetics and the automotive industry, possessing a long history of advanced manufacturing and a skilled workforce in many sectors, having attracted more than $5 billion in Chinese investment since 2000.

Michigan-based General Motors announced in March 2022 the creation of a new China-based premium import business focused on “iconic vehicles” from the U.S. This unique export line is expected to supplement the 2.9 million vehicles GM sold in China in 2021 which are generally manufactured through localized production. Chinese battery maker Gotion High-Tech Co. will build its first major American factory in Michigan. In September 2022, Chinese-owned Nexteer Automotive Corp received a $25 million COVID-19 relief fund to keep 1,110 jobs in Saginaw, Michigan, with hopes that the plant will expand into electric vehicle production. Ambassador Qin Gang was in attendance at Detroit’s Auto Show–which had a particular focus on the future of electric vehicles–and spoke of the entwined interests of the two nations in the industry, with several Chinese companies participating. In August 2022, the Detroit Chinese Engineers Association along with China Science and Technology Exchange Center and the School of Vehicle and Mobility of Tsinghua University hosted “China-U.S. Energy Bridge 2022” themed around Electric Vehicles and Smart Grid with experts from both countries to exchange ideas, connect and report the latest advancements in green energy vehicles. In 2022, The USA Table Tennis Ping Pong Diplomacy Team Championships Tour celebrated the 50^th anniversary of Richard Nixon’s memorable visit to China in 1972.

China ranks as Michigan’s leading place of origin for international students in 2022, with an estimated 8,601 students in attendance. This marks an estimated -8% decrease in enrollment of Chinese students from 2021 to 2022, and a -18% decrease from 2020 to 2022. Many universities in Michigan have exchange programs with their peers in China. Among them, the University of Michigan holds great historical importance in U.S.-China relations. It welcomed its first Chinese students in 1892 and has educated generations of leaders in the U.S.-China Relations space. It was also the first stop on the 9-city tour of the Chinese Ping-Pong team in 1972, in a series of events that later became known as “Ping-Pong Diplomacy”, for which a 50th anniversary celebration was held at the University of Michigan in 2022.

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