Economic Policy Institute says the US-China trade relationship needs fundamental change to stop ‘unfair trade and illegal currency manipulation’
A lengthy report released last week by the Economic Policy Institute, a US think tank, lays bare the loss of American jobs to China, particularly in tech manufacturing.
The report states that “due to the trade deficit with China 3.4 million [American] jobs were lost between 2001 and 2015, including 1.3 million jobs lost since the first year of the Great Recession in 2008. Nearly three-fourths (74.3%) of the jobs lost between 2001 and 2015 were in manufacturing (2.6 million manufacturing jobs displaced).”
The most adversely impacted sector of the US economy was the computer and electronic parts industry, which experienced a loss of 1,238,300 jobs, representing 36% of the 2001–2015 total and primarily affecting California, Texas, Oregon, Massachusetts, Minnesota and Arizona.
Here’s another takeaway. “In 2015, the United States had a US$120.7 billion deficit in advanced technology products with China, and this deficit was responsible for 32.9% of the total US-China goods trade deficit. In contrast, the United States had a US$28.9 billion surplus in advanced technology products with the rest of the world in 2015.”
How did this happen?
“China both subsidizes and dumps massive quantities of exports,” the report says. “Specifically it blocks imports, pirates software and technology from foreign producers, manipulates its currency, invests in massive amounts of excess production capacity in a range of basic industries, often through state owned enterprises (SOEs) … and operates as a refuse lot for carbon and other industrial pollutants. China has also engaged in extensive and sustained currency manipulation over the past two decades …
“Other countries in the region have found it attractive to follow (and difficult to resist following) China’s lead in engaging in currency manipulation, resulting in the region’s large and growing trade surpluses with the United States and the world over the past 15 years.”
Full article: China has cost US 3.4 million jobs, says think tank (Asia Times)