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Four Maps Showing China’s Rising Dominance in Trade

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We often use big, overarching ideas to help us understand the world and the opportunities contained within. These narratives, which can change over time, are used to create context. They give us a frame of reference for comprehending the news and events that affect our outlook on things.

China’s economic prowess is one of these new paradigms that has emerged, but many people still can’t really wrap their heads around the scale or scope of it.

It’s happened suddenly, and the ramifications are extremely relevant to our investments and understanding. Here’s four maps on China’s trade dominance that will help you think differently about the world:

China is the world’s #1 trade partner

China trading partners outnumbers US by a factor of two

Image courtesy of: Connectography

The United States is the number one trading partner for 56 countries, with important relationships throughout North America, South America, and Western Europe.

Meanwhile, China is the top partner for 124 countries, dominating trade in Asia, Eastern Europe, Africa, and Australia.

China’s Sphere of Influence

This map shows the portion of trade conducted by each country with China in Southeast Asia.

China's trade with ASEAN

Image courtesy of: Stratfor

The influence that China has with nations in Southeast Asia is significant. Most trade is in double-digit percentages, and China views this as its immediate sphere of influence. Throughout history, territories in this region would even pay tribute to China to gain access to trade.

“In East Asia’s tribute system, China was the superior state, and many of its neighboring states were vassal states, and they maintained a relationship of tribute and rewards,” writes Liu Mingfu in The China Dream, a popular book about China’s plans to return to power.

Maintaining influence in Southeast Asia is part of the reason that Beijing is posturing in the South China Sea. In fact, China’s coastguard is growing so fast that in 10 years it will have more tonnage than all of the coastguards in Southeast Asia, the United States, and Japan combined.

Building a New Silk Road for Chinese Trade

New Silk Road

Image courtesy of: Council of Foreign Relations

China seeks to increase trade ties with Asia and Europe even further by building a new Silk Road that puts even Marco Polo’s route to shame.

The Chinese transcontinental network, a massive infrastructure project pegged for completion by 2025, is expected to bring down overland travel time from Beijing to London to just two days. Currently, it takes 15 days for the journey.

The project’s aim is to shorten the time of bulk consumer-goods transport to Europe, while unlocking the economic potential behind Eurasian cities from Almaty to Tehran. The new Silk Road will include at least one high-speed line that goes 320 km/h, and the network will help to link up 70% of the world’s population in roughly 40 countries.

Infrastructure Override

You may have heard of the AIIB (Asian Infrastructure Investment Bank), which was officially launched at the end of last year. Initially proposed by China, the bank now has over a $100 billion of capitalization and 57 founding member states.

AIIB

Image courtesy of: Reuters

While this shows China’s push for infrastructure especially to coincide with its new Silk Road, there is another very interesting detail: Beijing controls 26.06% of the votes, essentially giving it veto power as most bank decisions need 75% of the votes to pass.

In other words, only infrastructure projects that benefit Chinese trade will likely get the nod from Beijing.

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Visualizing the Major Product Exported by Each U.S. State

Canada is the top destination for products from 21 states.

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Graphic showing product categories each state exports worldwide.

Visualizing the Major Product Exported by Each State

The U.S. is the second biggest exporter in the world, accounting for over 8% of global exports.

In this graphic by NeoMam Studios, we analyze the primary product exported by each state, as well as its main destination, utilizing data from the U.S. International Trade Administration.

Canada: The Primary Destination

Canada serves as the largest export market for most of the Midwest, while Mexico holds the top spot as the export destination for much of the Southwest and Southeast. Additionally, Canada stands out as the primary importer of products from 21 states, with China and Germany trailing behind as notable destinations.

StateDestinationTop Product ExportedValue (USD)
Alabama🇩🇪 GermanyTransportation equip.$3,649M
Alaska🇨🇦 CanadaMinerals$576M
Arizona🇲🇽 MexicoMinerals$1,760M
Arkansas🇨🇦 CanadaProcessed Foods$246M
California🇨🇦 CanadaComputer & Electronics$5,093M
Colorado🇰🇷 South KoreaProcessed Foods$545M
Connecticut🇩🇪 GermanyTransportation equip.$1,581M
Delaware🇰🇷 South KoreaAppliances$419M
Florida🇬🇧 UKChemicals$2,447M
Georgia🇨🇦 CanadaMachinery$1,629M
Hawaii🇭🇰 Hong KongTransportation equip.$68M
Idaho🇹🇼 TaiwanComputer & Electronics$394M
Illinois🇨🇦 CanadaTransportation equip.$4,517M
Indiana🇨🇦 CanadaTransportation equip.$6,561M
Iowa🇨🇦 CanadaMachinery$1,598M
Kansas🇲🇽 MexicoAgricultural$1,543M
Kentucky🇨🇦 CanadaTransportation equip.$3,630M
Louisiana🇨🇳 ChinaAgricultural$11,300M
Maine🇨🇦 CanadaOil & Gas$504M
Maryland🇫🇷 FranceTransportation equip.$949M
Massachusetts🇨🇳 ChinaMachinery$1,298M
Michigan🇨🇳 ChinaTransportation equip.$15,361M
Minnesota🇨🇦 CanadaPetroleum & Coal$2,787M
Mississippi🇵🇦 PanamaPetroleum & Coal$2,106M
Missouri🇨🇦 CanadaTransportation equip.$2,390M
Montana🇨🇦 CanadaMinerals$153M
Nebraska🇲🇽 MexicoAgricultural$933M
Nevada🇨🇭 SwitzerlandMetal$1,399M
New Hampshire🇩🇪 GermanyTransportation equip.$695M
New Jersey🇨🇦 CanadaChemicals$2,734M
New Mexico🇲🇽 MexicoComputer & Electronics$2,014M
New York🇨🇭 SwitzerlandMetal $18,262M
North Carolina🇨🇳 ChinaChemicals$4,312M
North Dakota🇨🇦 CanadaPetroleum & Coal$1,441M
Ohio🇨🇦 CanadaTransportation equip.$5,990M
Oklahoma🇨🇦 CanadaMachinery$418M
Oregon🇨🇳 ChinaComputer & Electronics$6,261M
Pennsylvania🇨🇦 CanadaChemicals$2,280M
Rhode Island🇮🇹 ItalyWaste & Scrap$321M
South Carolina🇩🇪 GermanyTransportation equip.$3,774M
South Dakota🇨🇦 CanadaProcessed Foods$297M
Tennessee🇨🇦 CanadaTransportation equip.$2,017M
Texas🇲🇽 MexicoPetroleum & Coal $33,627M
Utah🇬🇧 UKMetal $6,805M
Vermont🇹🇼 TaiwanComputer & Electronics$447M
Virginia🇮🇳 IndiaMinerals$1,799M
Washington🇨🇳 ChinaAgricultural $10,553M
West Virginia🇮🇳 IndiaMinerals$657M
Wisconsin🇨🇦 CanadaMachinery$1,802M
Wyoming🇮🇩 IndonesiaChemicals$200M

When it comes to the types of exports, transportation equipment emerges as the primary source for the majority of states, with minerals and ores, chemicals, and computer and electronics following closely behind.

For instance, North Carolina ships $4.3 billion worth of chemicals to China, marking one of the longest-distance trade flows among states. Meanwhile, Florida boasts one of the most diverse export portfolios, engaging in trade with Europe, South America, and the Caribbean.

Louisiana heavily relies on the export of agricultural products to China, which contributes significantly to its total GDP. Similarly, Michigan’s transportation equipment exports to Canada constitute a noteworthy portion of the state’s GDP.

In Oregon, exports of semiconductors and other computer parts to China, driven by companies like Intel and Micron, play a crucial role in the state’s economy. Meanwhile, Utah predominantly exports primary metal manufacturing goods to the United Kingdom.

The biggest exporter in the country, Texas, sees a significant portion of its GDP attributed to exports to Mexico, further underlining the state’s economic ties with its southern neighbor.

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