China and California Strategic Partnership 2023
On October 25, 2023 the Governor of California, Gavin Newsom, met with Chinese President Xi Jinping in Beijing. The California Governor is the first US governor to visit China during the last four years and will complete a week-long trip, including visits to Shanghai, Shenzhen and Jiangsu.
The focus of the trip is to advance climate collaboration, promote bilateral economic development, and strengthen tourism and cultural relations.
A Memorandum of Understanding focused on climate action has been signed in Guangdong with the National Development and Reform Commission, highlighting the significance of collaboration between the two countries which jointly produce more than 40 per cent of the world’s carbon emissions.
There were also discussions regarding strengthening the economic relationship between the second and fifth largest economies. California’s GDP in the first quarter of 2023 was USD 3.7 trillion and has a population size of 39 million. California was the second-largest contributor to US exports in 2022, with a total export value of USD 185.5 billion.
In 2022, California’s most significant trade partner was China, with USD 166 billion in two-way trade. China remained the third-largest destination for California exports, accounting for approximately USD 18.2 billion. These exports mainly included computer and electronic products, machinery, and chemicals. California imported goods worth USD 147.6 billion from China, with primary imports encompassing computer and electronic products, electrical equipment, manufactured goods, and apparel.
Furthermore, China ranked as the eighth largest provider of foreign direct investment in California in 2022 via foreign-owned enterprises (FOEs). Chinese FOEs operating in California contributed 19,262 jobs across 700 firms, resulting in a total wage sum of USD 1.99 billion.
California Governor Gavin Newsom will continue discussions regarding China-California bilateral economic relations and climate cooperation and is expected to sign agreements with leaders in Jiangsu and Shanghai.