Trade with China

Trade with China

The U.S. trade deficit with China skyrocketed for the eighth consecutive year in 2008 (the last year for which annual data is available), reaching a record high of $268 billion—nearly 40 percent of the overall U.S. trade deficit. The sheer size and permanency of this deficit raises serious questions about its causes, including to what extent the deficit is driven by government interventions in the Chinese economy.

In particular, the People’s Republic of China maintains numerous policies, including state-sponsored subsidies aimed at promoting investment, exports and employment. These policies have a direct role in increasing the U.S.-China trade imbalance and negatively affect the health of our domestically based manufacturers, service providers and farmers. When China became a member of the World Trade Organization in 2001, proponents argued it would herald a new age of opportunity and would expand market opportunities for U.S. companies.

But China continues to follow a policy of export-led growth to build up its manufacturing base at the expense of other countries. Almost 60 percent of China’s exports come not from Chinese firms but from foreign-invested enterprises. Many of these companies set up operations hoping to serve the Chinese market, only to find a web of policies and practices to limit their opportunities there but incentives to export their products back to their home countries.

@KeepitMadeinUSA on Twitter

  • ... all of this is to say that there were social & economic consequences from the loss of millions of manufacturing… https://t.co/AcJBeb2Twe 3 hours 21 min ago
  • ...because Trump hasn't done much to actually follow through on his promises on trade. The Americans hurt by job lo… https://t.co/nD0U0tqgvb 3 hours 25 min ago
  • ... all of this is to say that regardless of what you might think of Team Trump, we as a nation are still very much… https://t.co/Ju5pg4nbZ8 3 hours 28 min ago
  • ... There's very strong evidence that the loss of factory jobs is one of the contributing factors to the "deaths of… https://t.co/gT746EUxe5 3 hours 31 min ago
  • ... the National Bureau of Economic Research and Yale University found areas exposed to trade liberalization exhibi… https://t.co/iNOJCiLB6E 3 hours 33 min ago
  • ... this study found it led to lower marriage rates of some manufacturing workers who lost jobs to trade. That also… https://t.co/ak20UtZ4yu 3 hours 34 min ago
  • ...unemployment and cut wages. One study found that areas and industries targeted by import competition caused “hig… https://t.co/W1d7gzuzTg 3 hours 36 min ago
  • Let's talk about that White House memo on manufacturing. It's been widely mocked (and not without some reason). But… https://t.co/8BLFdwKMZR 3 hours 37 min ago
  • Mock that White House memo all you want. But the loss of millions of factory jobs had real economic & social costs. https://t.co/ivkvMdn3Ff 3 hours 51 min ago
  • LISTEN: Vincent Vittorio (@2v) on the American Made Movie & the future of Made in America. https://t.co/5UrG2exKZz… https://t.co/M02iDMB9HY 8 hours 48 min ago