Texas’ trade volume with China is significantly higher than that of other Heartland states. The $21 billion in goods exports to China in 2021 marked a 23% growth and more than doubled the average from 2008-2017. Much of this surge may be attributed to the increase in oil & gas exporting made possible by numerous recent deals such as the Cheniere Energy and PetroChina contract for 1.8 MTPA (million tons per annum) for a period of 24 years. Texas is also home to one of the largest Chinatowns in the United States. The first Chinese to arrive in Texas did so in 1870 to build the Houston and Texas Central Railroad, and then again in 1881 to build the Southern Pacific Railroad. In the 2021/2022 school year, an estimated 11,000 Chinese students are studying in Texas contributing an estimated $278 million to the state’s economy. Politicians in Texas, however, are turning more hard line on China. In 2021, Texas adopted a law banning all contracts in the state with foreign-owned companies related to critical infrastructure, listing China as one of the “hostile nations.” Talks are emerging about possible divestment of the estimated $9 billion investments that the state of Texas has in China. 

Texas continues to dominate in terms of trade volume with China in the Heartland region, generating a colossal $21 billion from goods exports in 2021, more than triple the value of the state with the second largest total. In 2021 Texas’ exporting to China grew by 23% to hit a new record, far surpassing previous totals; in fact, from 2008-2017 Texas averaged at $10 billion dollars annually in goods exporting to China, less than half of 2021’s revenue. As a result of the COVID-19 pandemic, service exports from Alabama to China fell by -34%.

To say that international trade is critical to Texas does the state a disservice, as Texas has led the nation in exports for 17 years, and is also a major importing state. Thus, disruptions in global supply chains and those caused by tariffs are especially felt in the Lone State. As they say, everything is bigger in Texas; the state imports more steel and aluminum than any other, and therefore has felt the biggest impact from U.S.’ global tariffs. Texas’ total exports to China fell by 34% between 2018 and 2019.

Much of 2021’s surge may be attributed to the increased sales of oil and gas which account for 37% of Texas’ exporting to China and grew by 25% for a total of $7.9 billion. Exporting of industrial machinery likewise grew 66% percent in 2021, while exporting of basic chemicals grew 41%. Yet resins and synthetic fibers, Texas’ second largest export to China in 2020 fell by 7%, dropping the industry to fifth place on Texas’ list of top exports.

Cheniere Energy, headquartered in Texas and the largest U.S. exporter of LNG (liquefied natural gas) made several deals with Chinese companies in 2021, and in 2022 signed its largest deal with PetroChina Co. Ltd. for 1.8 MTPA (million tons per annum) for a period of 24 years supplied from its to-be-expanded Corpus Christi terminal in South Texas. China’s ban on cryptocurrency has many Chinese bitcoin entrepreneurs heading for Texas, with the Lone Star state capable of meeting the energy demands for mining. COVID-19-related shut down of Tesla’s Shanghai production factory led to the opening of a new Gigafactory in Austin. Yet it is not all smiles and handshakes; in 2021 Texas adopted a law banning all contracts in the state with foreign-owned companies related to critical infrastructure, listing “hostile nations” such as China, with some talk of divestment. Texas currently has an estimated $9.12 billion invested in China.

China ranks as Texas’ second leading place of origin for international students in 2022, with an estimated 11,095 students in attendance. This marks an estimated -24% decrease in enrollment of Chinese students from 2021 to 2022, and a -24% decrease from 2020 to 2022.

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