An Attack on the American Auto Parts Industry

New Reports Show China’s Illegal Trading Practices Endanger U.S. Auto Supply Chain

 

More than 400,000 jobs in the U.S. auto supply chain have been lost since 2000.  One major problem is China's persistent violations of World Trade Organization (WTO) rules, and another 1.6 million U.S. jobs are at risk unless China's illegal trading practices are curtailed, according to three separate reports released in January of 2012.

Taken together, these three reports show beyond a shadow of a doubt that China's blatant use of illegal government subsidies and a web of predatory trade practices on a massive scale are undercutting companies in the U.S. auto supply chain.

As a result of this web of subsidies and illegal practices, China’s exports of auto parts have surged over the past decade.  A large portion of these exports are bound for the U.S. market.  China is the fastest-growing source of U.S. auto parts imports.  In fact, since 2001, an Alliance for American Manufacturing (AAM) investigation has found that $62 billion worth of Chinese auto parts have been imported into the U.S., causing the auto parts trade deficit between the U.S. and China to increase by more than 850%.

 

Read AAM's press release

Read AAM's 'White Paper' about the attack on the American auto parts industry

 


Reports:

  • Growing Threats to the U.S. Auto-Parts Industry from Heavily Subsidized Chinese Tires and Parts, conducted by Robert E. Scott and Hilary Wething of the Economic Policy Institute (EPI), notes that a substantial portion of jobs in the U.S. auto industry are in the auto-parts sector, with direct and indirect auto parts jobs in virtually every state.  The report concludes that “every one of these [1.6 million U.S.] auto-parts jobs is individually at-risk from this unfair trade competition.” Research by AAM has found that the auto parts sector comprises 75% of employment in the U.S. auto industry.

 


Press:

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