AAM said that the United States is losing millions of jobs as a result of the nation's growing trade deficit, largely with China. The Alliance for American Manufacturing (AAM) was quoting an Economic Policy Institute (EPI) report released March 24, 2010,
AAM said that, contrary to conventional wisdom, high-tech industries are losing jobs faster than any other sector of the economy, and pointed out that, since China joined the World Trade Organization (WTO) in 2001, 2.4 million jobs have been lost or displaced in the U.S. as a result of the burgeoning trade deficit with that nation.
The EPI report is the first intended to break down job losses to the congressional district level. Using EPI data, AAM created an interactive map showing the impact by CDs. The hardest-hit districts were located in California and Texas, where remaining jobs in these industries are concentrated, and also in North Carolina, which was hit by job displacement in a variety of manufacturing industries. Other populous states like New York and Illinois also had major job losses.
"China's cheating is causing America to lose more than just the capacity to make widgets in the one-sided trade arrangements with China," said AAM Executive Director Scott Paul. "Sophisticated electronics and high-tech products that once were made in the United States are increasingly being made in China instead. We are losing more and more of these good jobs."
The report cites China's currency manipulation as a major cause of the growing U.S. trade deficit with that nation. China has tightly pegged its currency to the dollar at a rate that encourages a large bilateral surplus with the United States. Other causes of the deficit include massive industrial subsidies in China, lax labor and environmental law enforcement, intellectual property theft and piracy and Chinese policies that block market access to U.S. firms.
"This intervention makes the yuan artificially cheap and provides an effective subsidy on Chinese exports," said Robert E. Scott, EPI's director of international programs, who authored the report. "Unless China raises the real value of the yuan by at least 40 percent and eliminates other trade distortions, the U.S. trade deficit and job losses will continue to grow rapidly."
to Daily News