The U.S. exports to China hit 120 billion U.S. dollars last year, making China the third largest export market for American goods, said the U.S.-China Business Council (USCBC) Wednesday.

In a newly released report, the USCBC, a private, nonprofit organization, noted that U.S. exports to China have grown at an average annual rate of 15.1 percent over the past 10 years, fastest among all major U.S. trading partner.

The American exports to China rose by 10.4 percent last year, making it a major export market for U.S. goods only behind Canada and Mexico, the two neighbors with which the United States has a free trade agreement.

"Exports play an essential role in the U.S. economy and job growth," claimed the report. U.S. exports to China helped support a wide range of industries, including transportation equipment, crop production, computers and electronics, and chemicals, along with export-related jobs in America's port cities.