U.S. Trade Tariffs on China: Effects on California’s Economy


The Assembly Select Committee on Asia/California Trade and Investment Promotion and the Assembly Committee on Jobs, Economic Development, and the Economy convened an informational hearing on Wednesday, July 17, 2019 at the State Building in San Francisco to discuss the effects of the United States’ trade tariffs on China on the California economy. The joint hearing was hosted by California State Assembly Member and Chair of the Assembly Select Committee, Phil Ting, who commented on the current state of economic relations between California and China.

China is California’s third largest export market with more than $16 billion in goods exported in 2018 while investors from China are a leading source of Foreign Direct Investment (FDI) in California. China’s increased focus on addressing the causes of climate change through policy and the development of new clean technology has led to deeper cooperation between China and California. The intensifying trade conflict between the U.S. and China has amounted to elevated tariffs on hundreds of billions of dollars in goods traded between the two countries likely to affect a range of industries throughout the U.S. and subnational economies including California. California’s agricultural sector —particularly California’s fruit and tree nut exports — experienced some of the earliest impacts of the U.S.’s trade dispute with China while other industries are voicing growing concern over policies that serve as de facto barriers to market access.

Darlene Chiu Bryant, Founder and Executive Director of GlobalSF, participated in the hearing alongside Eleni Kounalakis, California’s Lt. Governor, who serves as Governor Gavin Newsom’s chief advisor on foreign affairs and trade promotion, Deputy Consul General Ren Faqiang, Consul General of the People’s Republic of China, and leaders from various trade and research organizations participated in the hearing.