US Chip Exports to China Plunge, Report Says

U.S. exports of semiconductors and their components to China dropped 39% to $6.8 billion in 2023 and were down 52% from their 2021 peak, partly due to restrictions the Bureau of Industry and Security released in October 2022 and expanded a year later (see [Ref:2310170055), the U.S.-China Business Council said April 23.

“China’s weak recovery in 2023 and expanding U.S. export controls on advanced semiconductors and semiconductor manufacturing equipment both curtailed demand and inhibited exports to China,” the council said. “With the application of export controls and the likelihood of further U.S. restrictions going forward, Chinese customers continue to deprioritize American products when there are viable domestic and third-country suppliers.”

Oilseeds and grains remained the top U.S. goods export to China last year despite falling 27% to $18.5 billion, while U.S. oil and gas exports to China surged 59% to $17.6 billion, the council’s report says. Overall, U.S. goods exports to China declined 4.3% to $144.9 billion in 2023 after reaching a record high the year before.

“Stunted economic growth in China, Russia’s war in Ukraine, and challenges in the U.S.-China government-to-government relationship -- in addition to long-standing barriers, such as tariffs -- are weighing on bilateral trade,” the council wrote.

China was the United States’ third-largest goods export market in 2023, behind Canada and Mexico.