NEW YORK - United States exports to China grew by 32 percent last year, according to a group that represents American companies doing business with the second largest economy in the world.

The US-China Business Council (USCBC) also said that more than $1 billion in exports were made to China from almost half of the 50 states in the US. The group is encouraging US trade agencies to make exports to China a vital part of their plans.

The USCBC is a private and nonprofit organization of about 220 American companies. According to its annual report, China once again was one of the fastest growing markets for US manufactured and agricultural goods.

The report did mention that the US share of China's imports declined over the decade from 10 percent to 7 percent.

John Frisbie, president of the USCBC, said exports to China are essential for the US economy. China is the US' third largest export market behind Canada and Mexico and he said the nation is growing faster than many other major destinations for American manufactured goods and farm products.

"Over the last decade we have seen exports to China rise from $16.2 billion to $91.9 billion - a 468 percent increase," Frisbie said.

Julian Chang, executive director of the Asia Programs at the John F. Kennedy School of Government at Harvard University, said the growth is "the way of the future, which may be slightly impacted by a rise in the value of the yuan".

"If the yuan floats to a less-artificial level, this may have an effect on the composition of exports to China. For American companies, technological advantages, brand and value differentiation will become even more important," Chang told China Daily.

"Our research is showing that the level of M&A activity will increase not only in dollars invested but also in the diversity of companies acquired," Chang added.

The report also said that American companies that benefited from the surge in exports were not only large firms but also small- and medium-sized businesses.

"China is now the third largest export market from American small- and medium-sized companies," Frisbie said.

In January of last year, US President Barack Obama launched the National Export Initiative, a nationwide effort that aims to double US exports and supporting 2 million jobs in the next five years - a target that requires a 15 percent annual growth rate in exports.

The report stated that the number of states that exported to China tripled from five years ago, with California topping the list."Thirty states now count China as one of their top three export markets and forty-seven states have registered at least triple-digit growth to China since 2000," said Frisbie.

China Daily