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
- VIDEO: Concerns about America's defense industrial base • by scapozzola • 05/22/2013
- CNBC: China investing in U.S. • by scapozzola • 05/22/2013
- In Indiana, ongoing concerns about subsidized auto parts from China and Japan • by scapozzola • 05/22/2013
- RADIO: AAM's Scott Paul on Leslie Marshall Radio Show, May 20, 2013 • by scapozzola • 05/21/2013
- Shoring up our security means addressing the China challenge • by mmcmullan • 05/20/2013
- Quote of the Day from Caterpillar's Doug Oberhelman • by LDonia • 05/20/2013
- President Obama visits Baltimore factory to promote infrastructure investment as a means of revitalizing the middle class • by LDonia • 05/17/2013
- Five reasons you should be concerned about the U.S. military's reliance on foreign manufacturers. • by LDonia • 05/16/2013
- Looking for a manufacturing job? Consider heading to one of these ten metro areas! • by mmcmullan • 05/16/2013
- National Retail Federation dismisses global safety plan for garment factories while Cambodian shoe factory collapses. • by LDonia • 05/16/2013
