Trade with China

Trade with China

The U.S. trade deficit with China skyrocketed for the eighth consecutive year in 2008 (the last year for which annual data is available), reaching a record high of $268 billion—nearly 40 percent of the overall U.S. trade deficit. The sheer size and permanency of this deficit raises serious questions about its causes, including to what extent the deficit is driven by government interventions in the Chinese economy.

In particular, the People’s Republic of China maintains numerous policies, including state-sponsored subsidies aimed at promoting investment, exports and employment. These policies have a direct role in increasing the U.S.-China trade imbalance and negatively affect the health of our domestically based manufacturers, service providers and farmers. When China became a member of the World Trade Organization in 2001, proponents argued it would herald a new age of opportunity and would expand market opportunities for U.S. companies.

But China continues to follow a policy of export-led growth to build up its manufacturing base at the expense of other countries. Almost 60 percent of China’s exports come not from Chinese firms but from foreign-invested enterprises. Many of these companies set up operations hoping to serve the Chinese market, only to find a web of policies and practices to limit their opportunities there but incentives to export their products back to their home countries.

@KeepitMadeinUSA on Twitter

  • Obama admin placed tariffs on China-made tires, but expired. Hope tariffs are put back in place, but we also must be more proactive. #edshow 12 hours 59 min ago
  • Countries like China subsidize tires they produce. Tariffs level the playing field for U.S. manufacturers & workers, says @ScottPaulAAM. 13 hours 1 min ago
  • "Tariffs help to level the playing field -- nothing more and nothing less." -@ScottPaulAAM 13 hours 2 min ago
  • On @EdShow NOW: Unfair trade practices mean tire manufacturing workers are struggling to keep their jobs... 13 hours 3 min ago
  • Our @ScottPaulAAM will be on the @EdShow in the next segment... tune in NOW! 13 hours 13 min ago
  • .@royhouseman on Taking Stock @pimmfox: U.S. steel producers can compete in a growing market as long as the playing field is level #SOSjobs 13 hours 38 min ago
  • If domestic OCTG producers can compete in a growing market it will provide the an opportunity for significant growth. -@royhouseman #SOSjobs 13 hours 40 min ago
  • RT @royhouseman: Going on the "taking stock with Primm Fox" show on @BloombergTV here in a few! Going to discuss #USW support of OCTG trade… 13 hours 47 min ago
  • MT @edshow ➨ 20 mins! @janekleeb @Bold Nebraska, Tiernan Sittenfeld @LCVoters on #NoKXL; @ScottPaulAAM @KeepitMadeinUSA on #chinesetires 13 hours 52 min ago
  • "I never thought that I'd be making watches. I appreciate that they're in Detroit and what they're doing." http://t.co/aAAsBLtNxF @Shinola 15 hours 28 min ago