U.S. Trade Balance With China

Chart of the Week for October 1-7, 2004

China is currently the third largest trading partner with the U.S. after Canada and Mexico based on total trade. Total trade is calculated by adding the value of all imports and exports together. The U.S. imports more goods and services from China than any other country. The trade balance between the U.S. and China is the difference between the goods and services the U.S. exports to China minus the goods and services imported from China.

The chart above shows the U.S. imports from China, U.S. exports to China and the trade balance. The U.S. has a negative trade balance with China, and it has been growing. During the period from 1997 to 2003, imports from China have grown 244% while exports to China have grown 221% indicating that the trade balance is widening. There was already a sizeable trade balance deficit with China in 1996, totalling $39.5 billion at the end of the year.

* The illustration was created from information provided by the United States Bureau of the Census, which is not affiliated with the ICMA-RC. Please consult both the current Vantagepoint Funds prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment Guide carefully for a complete summary of all fees, expenses, charges, financial highlights and investment objectives, risks and performance information prior to investing any money. Vantagepoint securities are distributed by ICMA-RC Services LLC, a broker dealer affiliate of ICMA-RC, member NASD/SIPC. For a current prospectus, contact ICMA-RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002-4240. 1-800-669-7400. AC: 1004-2.