Could China's paper subsidies claim another U.S. victim?
In June 2011, the Economic Policy Institute (EPI) released a report on China’s rapid rise in the global paper industry. According to the report's author, by Dr. Usha C.V. Haley, China has massively ramped up exports of paper thanks to more than $33 billion in government subsidies from 2002 to 2009.
Haley says that China's paper industry is heavily subsidized by the Chinese government, in violation of global trading rules, which has led to a tripling of production over the past decade.
A more troubling consequence is the toll these subsidies have taken on the U.S. paper industry.
The latest example: According to Wisconsin's Channel3000 News, a Wausau Paper plant in Rhinelander, WI is being put up for sale. And the reason:
Wisconsin communities have lost their paper mills as the industry contracts under market pressures that include cheaper products from China.
Related recent Blogs
- Treasury decision on China currency will cost U.S. jobs: Alliance for American Manufacturing (AAM) Statement. • by scapozzola • 04/15/2014
- OPINION: Fix the vulnerable defense industrial base • by mmcmullan • 04/14/2014
- Manufacturing Jobs & #EqualPay • by LRaup • 04/11/2014
- Rep. Sandy Levin talks currency and the TPP • by mmcmullan • 04/10/2014
- Throwback Thursday: Obama promises 1 million new manufacturing jobs • by TGarland • 04/10/2014
- What can we expect from the upcoming Treasury report on exchange rates? • by mmcmullan • 04/08/2014
- Rep. Tonko brings filmmakers to Washington to talk American manufacturing • by TGarland • 04/08/2014
- RADIO: Why is manufacturing important for job creation in Michigan (and the U.S.)? • by scapozzola • 04/07/2014
- Creating Jobs Now: USW and AAM take the next step in Akron • by TGarland • 04/04/2014
- Manufacturing sector loses 1,000 jobs in March: Alliance for American Manufacturing (AAM) statement. • by scapozzola • 04/04/2014