SACRAMENTO – There is a paradox at the heart of the US economy. As the federal government imposes sweeping tariffs, signals hostility to multilateral trade, and unnerves long-term investors with erratic policymaking, one state has emerged as the most reliable US address for global capital: California, the world’s fourth-largest economy and America’s second-largest exporting state (with $188 billion in annual goods exports). In 2024, California’s GDP grew by 6%, outpacing the United States, China, and Germany.

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