Michigan Currently Exports More than $1 Billion in Goods to China

Michigan’s economic strength can grow with globalization. Vehicles are a big part of export growth for the state, and part exports have increased 26.3 percent since 2001. While the importation of auto part imports from China has grown in recent years, Michigan exports to that country have increased by a far greater amount.

China is now the 5th largest export market for Michigan goods, but moreover, it is perhaps the most important market for Michigan products. Michigan exports to China are currently more than $1 billion, climbing there from only $215 million in 1996.

If this strong growth is maintained this year, China will become the 3rd largest market for Michigan goods, passing up Germany and Japan. Let’s take a look at the type of goods that are in demand from our Chinese trade partners, beginning with demand for Michigan vehicles and auto parts. Export of these goods has grown from $41.6 million in 2001 to $446 million in 2006.

Another important growing market with China is Michigan machinery. Our state’s machinery sales to China have more than doubled since 2001, even though global sales of Michigan machinery have been stagnant over the past decade.

The Chinese purchases over 40% of the Michigan’s total zinc production. Chinese markets buy 15.9 percent of Michigan hides and skins, and 10.9 percent of Michigan inorganic chemicals. China is also a good market for exports of medical instruments and soap.

Michigan total exports now stand at $40.4 billion annually, according to Census Bureau figures.
The largest markets for Michigan products are fellow NAFTA countries Canada and Mexico, together accounting for 70.5 percent of Michigan’s exports.

Although auto industry exports are substantial they account for only half of the state’s total export growth. Fuel exports, especially natural gas, increased 651 percent from 2001 to 2006 reaching $1.8 billion.

Since 2001 metals such as iron, steel, copper, lead, zinc and tin have each gone up by more than 100 percent — tin by an amazing 2,258 percent and now bring in $1.5 billion from exports. Michigan boats increased 552 percent since 2001; trees and plants by 180 percent; and vegetables by 106 percent. Plastics, another major industry in Michigan, increased by 40.8 percent.

Although Michigan’s total exports have not increased as much in recent years as the rest of the states, it is still above average in per-capita exports. Michigan’s exports have shown strength across its industries and the market for Michigan products continues to grow.

Statistics cited in this article are from James M. Hohman, a fiscal policy research assistant at the Mackinac Center for Public Policy, a research and educational institute headquartered in Midland, MI.