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%.
- 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.
- Putting the Pedal to the Metal: Subsidies to China’s Auto-Parts Industry from 2001 to 2011, conducted for EPI by Usha C.V. Haley, cites $27.5 billion in government subsidies to the Chinese auto-parts industry and notes that China’s central government has committed to disbursing an additional $10.9 billion in subsidies for industrial restructuring and technological development of the industry.
- China’s Support Program for Automobiles and Auto Parts Under the 12th Five Year Plan, by Stewart and Stewart, a prominent law firm that has won cases challenging China’s unfair trading practices, offers evidence that the massive government subsidies being given to Chinese producers, which are in violation of China’s WTO commitments, will continue for years to come unless challenged by Congress and the President.
- Time to get tough with China, save New York’s auto jobs • Buffalo News • 04/20/2012
- China subsidizes its auto parts, putting at risk Pennsylvania jobs • Pittsburgh Post Gazette • 04/20/2012
- Get tough with China to save Wisconsin auto parts jobs • Capital City Times • 04/01/2012
- China's cheating puts Wisconsin jobs at risk • Milwaukee Journal Sentinel • 04/01/2012
- Cheating by China threatens Maryland jobs • Baltimore Sun • 03/28/2012
- Time to get tough with China to save La. auto jobs • Shreveport Times • 03/17/2012
- Save Missouri's auto parts jobs • St. Louis Post Dispatch • 03/14/2012
- Chinese Auto Parts • CBS St. Louis • 03/14/2012
- Illinois jobs at stake in China trade dispute • Illinois Radio Network • 03/13/2012
- Getting tough with China to save Illinois auto jobs • Chicago Tribune • 03/09/2012
- Defending auto parts jobs • The Roanoke Times • 03/06/2012
- President Must Deal with Loss of Auto-parts Jobs • The Tennessean • 03/05/2012
- Saving Virginia's Auto Jobs • The Virginian Pilot • 03/04/2012
- Protect Ohio Jobs from Chinese Imports • Cleveland Plain Dealer • 03/03/2012
- US companies at distinct disadvantage with China • Birmingham News • 03/02/2012
- Chinese auto-parts influx worries lawmakers • The Politico • 02/01/2012
- US group says China 'subsidising' auto part makers • BBC • 02/01/2012
- China's Trade Practices Hurting Tier 1 and Tier 2 Automotive Suppliers • IndustryWeek • 01/31/2012
- China Practices Threaten 1.6 Million Auto Jobs, Reports Say • Bloomberg News • 01/31/2012
- China targeting US auto parts sector: industry • AFP • 01/31/2012
- Lawmakers renew call to pressure China on currency value • The Hill • 01/31/2012
- Lawmakers press Obama on China auto parts • Reuters • 01/31/2012
- Reports: Auto parts jobs at risk because of Chinese trade practices • Detroit News • 01/31/2012
- Chinese trade practices killing U.S. automotive jobs, reports say • Los Angeles Times • 01/31/2012
- Trade Protest Is Planned on Eve of a Chinese Leader’s Visit • New York Times • 01/30/2012
List of Fact Sheets:
- Growing Threats to the U.S. Auto-Parts Industry from Heavily Subsidized Chinese Tires and Parts
- Putting the Pedal to the Metal: Subsidies to China’s Auto-Parts Industry from 2001 to 2011
- The Attack on the American Auto Parts Industry Slide Show
- China’s Support Program for Automobiles and Auto Parts Under the 12th Five Year Plan
- The Attack on the American Auto Parts Industry: A Call for Action
- Urgent Action Needed to Prevent the Loss of the American Auto Parts Industry: A One Page Summary