Scything through heartland America, the human toll has been immense. More than 3.4 million jobs in the United States have been lost since China joined the World Trade Organisation 17 years ago.
At least 1.3 million jobs have disappeared in the past decade, fueling the trade war between Beijing and Washington and adding US$100 billion to the US deficit.
“The growth of the trade deficit with China between 2001 and 2017 was responsible for the loss of 3.4 million [American] jobs, including 1.3 million since 2008, [which was] the first full year of the Great Recession,” a report released by the Economic Policy Institute, a non-profit, liberal think tank based in Washington, revealed.
“Nearly 74.4% [or] 2.5 million of the jobs lost were in manufacturing,” co-authors Robert E Scott and Zane Mokhiber pointed out.
The sheer depth and scale of the problem affected 50 states, and demolished the computer and electronic parts industries, the study showed, as major US companies relocated manufacturing to China.
Other sectors which were badly hit included apparel, electrical equipment and appliances.
‘Electronic parts’
This, in turn, “contributed heavily to the crisis in US manufacturing employment,” triggering anti-China sentiment and the broader economic Cold War between President Donald Trump’s administration and President Xi Jinping’s government.
“The trade deficit in the computer and electronic parts industry grew the most [and up to] 1,209,000 jobs were lost,” the report highlighted. “Surging imports of steel, aluminum and other capital-intensive products [have also] threatened hundreds of thousands of jobs in key industries such as primary metals, machinery and fabricated metal products.”
Again, this strikes at the heart of Washington’s dispute.
Yet in Beijing, Trump’s bruising battle is seen increasingly as a way to contain China’s growing economic and military might.
By weaponizing tariffs on more than $250 billion worth of Chinese imports, the White House hopes to force Xi to change course and recast the “Made in China 2025” high-tech program, as well as adding a thick layer of transparency to the $1 trillion Belt and Road Initiative.
“[But] what Trump hoped would be a blitzkrieg has turned out more like trench warfare,” Keyu Jin, a professor of economics at the London School of Economics, said. “In China’s view, what the US is really reacting to is not only the specifics of its trade policy but also its overall development model and its aspirations to become a major global power – aspirations that are not out of reach.”
Caught in the crossfire are segments of the US manufacturing workforce.
The use of Chinese state subsidies, currency manipulation and excess production has created an unlevel playing field, according to the Economic Policy Institute’s study, echoing the views of Washington.
“China’s trade-distorting practices, aided by currency manipulation and its suppression of wages and labor rights [have] resulted in a flood of dumped and subsidized imports that greatly exceeded the growth of US exports to China,” Scott and Mokhiber stressed, adding that this had compressed wages in key industries.
Naturally, Beijing has repeatedly denied these allegations, insisting it believes in free trade, open markets and the WTO rule book.
At the same time, the ruling Communist Party has made it clear China will not capitulate.
Xi reiterated the Party line during his trip to Guangdong earlier this week when he called on the country to become “self-reliant.”
“To go from a big country to a strong one, we must give paramount importance to the development of the real economy,” he said. “Manufacturing is a key to the real economy, and the core strength of manufacturing is innovation or the control of core technologies.
‘No surrender’
“We must … seek innovation by relying on ourselves, and I hope all enterprises will work in this direction,” Xi added.
Reams of editorials from China’s state-owned media have underscored this approach in the past three months while ‘no surrender’ rebuttals have been issued after US threats.
Zhang Qingli, a vice-chairman of the influential Chinese People’s Political Consultative Conference, repeated that mantra during a meeting involving the American Chamber of Commerce in Hong Kong on Monday.
“We don’t fear a trade war. We don’t want it, but we don’t intend to back down,” Zhang was quoted as saying in the Chinese press.
Still, the US is digging in for the long haul.
Last year, the trade deficit stood at more than $375 billion, while in September it hit a record $34.13 billion for a single month and a staggering $225.79 billion for the first three quarters of the year.
“Many fear that this is only the beginning of a long conflict that could include casualties – far outside the realm of trade,” Jin, of the London School of Economics, said.
A harrowing thought after heartland America’s lost decades and lost jobs.
why not other WTO member affected the most? That why US the most went wrong compare to other member.Due finacial and employment fault ?????
Can any US President including Trump’s words be trusted?His accusations on other country are groundless. Think about Iraq .They were accused by US of having chemical weapons but not evidence was found.lt was just a lie make by US as an excuse to start a war.This is the the same trick use by Trump on China. US governments n politicians spent a lot of time n attention interfering othet countries instead of taking care of their our people at home trying to solve domestic problems such as native American welfare,racism between black n White by police .lack of politicians or government determination to control firearms which kill many innocent lives.This US President only concern about money earn from international arm sales.disregard on human lives.no respect on other nations an cultures .No respect on international rules n regulations.What aSham on US President n America.A selfish Nation bound to lost respect by others.
Can any US President including Trump’s words be trusted?His accusations on other country are groundless. Think about Iraq .They were accused by US of having chemical weapons but not evidence was found.lt was just a lie make by US as an excuse to start a war.This is the the same trick use by Trump on China. US governments n politicians spent a lot of time n attention interfering othet countries instead of taking care of their our people at home trying to solve domestic problems such as native American welfare,racism between black n White by police .lack of politicians or government determination to control firearms which kill many innocent lives.This US President only concern about money earn from international arm sales.disregard on human lives.no respect on other nations an cultures .No respect on international rules n regulations.What aSham on US President n America.A selfish Nation bound to lost respect by others.
1. Millions of American jobs are lost (for reasons not important for this post)
2. US Unemployment rate is at record low (near full employment)
We all see these two statements at the same time. Which one is a lie?
1. Millions of American jobs are lost (for reasons not important for this post)
2. US Unemployment rate is at record low (near full employment)
We all see these two statements at the same time. Which one is a lie?
1. Millions of American jobs are lost (for reasons not important for this post)
2. US Unemployment rate is at record low
We all see these two statements at the same time. Which one is a lie?
You forget that the US economy is booming now with almost full employment which is the reason that interest rates are rising as are wages. Admittedly the reason for this boom has been Trumps tough rhetoric on trade.
You forget that the US economy is booming now with almost full employment which is the reason that interest rates are rising as are wages. Admittedly the reason for this boom has been Trumps tough rhetoric on trade.
A few million jobs lost is NOTHING to corporate America. The military-industrial-intelligence complex is enjoying the best of times too. We can see, however, the gathering storms ahead. When the world starts to really worry about the tens of trillions of USD that cannot be repaid, the implosion will be triggered. Could be in 5,10,15 or 20 years. The Pentagon and the CIA can try to postpone the end of Pax Americana, but it is coming. And for many people on the globe, that will be a great thing!!
A few million jobs lost is NOTHING to corporate America. The military-industrial-intelligence complex is enjoying the best of times too. We can see, however, the gathering storms ahead. When the world starts to really worry about the tens of trillions of USD that cannot be repaid, the implosion will be triggered. Could be in 5,10,15 or 20 years. The Pentagon and the CIA can try to postpone the end of Pax Americana, but it is coming. And for many people on the globe, that will be a great thing!!
Came from the participating portion of the labor force, those who have given up looking for work. We had a participation rate of close to 70% of the available workforce not too long ago and now we’re at about 60%. Unemployment in the US is quite high when calculated that 70% of the potential workforce would like to be working.
Came from the participating portion of the labor force, those who have given up looking for work. We had a participation rate of close to 70% of the available workforce not too long ago and now we’re at about 60%. Unemployment in the US is quite high when calculated that 70% of the potential workforce would like to be working.
James Kazonga Hated in the rest of the world? Is that why I saw so many New York Yankees caps in a month in China? Chinese people admire the US and wish this current administration would just go away so they can continue to emulate the good things about America — which may or may not include electoral democracy, but which definitely do incude a productive and comfortable life.
In all this to-do about China stealing US industrial secrets, it is forgotten that in the 19th century, the US was famous for stealing European patents. They had to, as a developing country, to catch up….
James Kazonga Hated in the rest of the world? Is that why I saw so many New York Yankees caps in a month in China? Chinese people admire the US and wish this current administration would just go away so they can continue to emulate the good things about America — which may or may not include electoral democracy, but which definitely do incude a productive and comfortable life.
In all this to-do about China stealing US industrial secrets, it is forgotten that in the 19th century, the US was famous for stealing European patents. They had to, as a developing country, to catch up….
Globalization is an idea that was pursued in the belief that people would unite in peaceful coexistence as a result of it. Crimea and the spratly islands has shown that globalization doesn’t work.
Globalization is an idea that was pursued in the belief that people would unite in peaceful coexistence as a result of it. Crimea and the spratly islands has shown that globalization doesn’t work.
Ahson Aftab if the USA invents everything why do we need to compete?
Ahson Aftab if the USA invents everything why do we need to compete?
The reason the USA is so powerful and wealthy is because in the last century they pretty much invented every major invention in the history of mankind. Airplane, car, nuclear bomb, computers, internet, etc… The list goes on. And if this trend continues, the USA will continue to be the leader. The only way this will change is if other countries start inventing stuff. Now ask yourself.. what do you call a country that has population in the billions, millions of professors, engineers, but not contribute even one major invention in the last century. ..answer – a waste.
The reason the USA is so powerful and wealthy is because in the last century they pretty much invented every major invention in the history of mankind. Airplane, car, nuclear bomb, computers, internet, etc… The list goes on. And if this trend continues, the USA will continue to be the leader. The only way this will change is if other countries start inventing stuff. Now ask yourself.. what do you call a country that has population in the billions, millions of professors, engineers, but not contribute even one major invention in the last century. ..answer – a waste.