Could China's paper subsidies claim another U.S. victim?

Posted by scapozzola on 02/19/2013

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.

Read more.


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