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• Between 1998 and 2004, U.S. tech exports to China nearly tripled, from $3.0 billion to $8.7 billion.
• Only five countries are larger export destinations for American tech products than China; trends indicate China could rapidly move up the ranks.
• Between 1998 and 2004, U.S. tech imports from China quadrupled, from $16 billion to $68 billion.
• U.S. direct investment in China totaled $15.4 billion in 2004, a 34 percent increase over 2003.
• Chinese investment in the U.S. remains small but is rising, up 59 percent from 2003 to 2004.
• Public policy in both China and the United States must recognize the increasingly integrated nature of our economies; protectionist measures on either side only serve to restrict market access to China while raising prices on consumer goods for Americans.

We are delighted to bring you the fourth regular installment of the AeA Competitiveness Series.  The AeA research team produces these reports on the most timely and relevant issues to the high-tech industry and to U.S. competitiveness in a global economy.  We combine rigorous data with careful analysis to provide industry leaders and policymakers the information they need to assess the issue.