China surpasses Japan to become US's 3rd largest export market

China's imports from the U.S. surged 17% last year, surpassed Japan to be the third largest export market of the U.S., following Canada and Mexico, according to an annual trade report released by the Bush administration on Tuesday.

It is the eighth consecutive year that the U.S exports to China gained a double-digit growth. The growth was mainly contributed by exports of foods, feeds, and beverages, as well as automobiles and automotive parts, which rose by 40% and 38% respectively. Agriculture exports also surged 13%, according to the report.

Among the total U.S exports to China, the capital goods exports contributed 45% of the total, with 38% coming from industrial supplies.