Report: China is third-largest market for U.S. hi-tech goods

Despite the growing U.S. hi-tech trade deficit, James warned Congress and the Obama administration against imposing tariffs on Chinese goods, arguing such a move would hurt American consumers and embolden Chinese authorities to do the same to American firms.

“Ultimately, protectionist policies only restrain trade and raise prices for American consumers," James said.

"As China seeks to become a global leader in technology, it needs to move away from policies promoting discriminatory local standards, domestic government procurement preferences and protectionist competition laws," he added.

The top five states exporting goods to China in 2009 were California, Oregon, Texas, Massachusetts and North Carolina.