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

  • Toxic fast food meat is just another example of the dangers of Made-in-China goods: http://t.co/aAGHxJiQHA 57 min 12 sec ago
  • A #MadeinAmerica @TervisTumbler will keep your drink cold during the hot summer months: http://t.co/hXDkQruOuT 5 hours 53 min ago
  • .@SecretaryFoxx & 11 former transportation secretaries urge Congress to pass a long-term transportation funding bill: http://t.co/e1T5IJ0Izl 6 hours 29 min ago
  • We agree with @SecretaryFoxx: We need a long-term transportation infrastructure spending plan. http://t.co/0km740jVEW Will Congress listen? 1 day 5 min ago
  • .@SecretaryFoxx says long-term transportation plan needed. Doing so (w/ Buy America policies) will create jobs: http://t.co/greHym2C6x 1 day 1 hour ago
  • .@SecretaryFoxx says US transportation system "crumbling" in speech calling for a long-term spending plan: http://t.co/lgOu6ZjYoe 1 day 1 hour ago
  • In @PressClubDC speech, @SecretaryFoxx calls for a long-term transportation spending plan instead of short-term fixes to Highway Trust Fund. 1 day 1 hour ago
  • 9 fun facts abt NY’s bridges, @Buzzfeed! Wouldn't it be great if a No. 10 told us they were all Made in the USA? http://t.co/YdicwMUKoq 1 day 1 hour ago
  • .@Politico poll: Economy voters' top worry. To boost economy & create jobs, we shld rebuild our infrastructure w/ Buy America requirements. 1 day 2 hours ago
  • No. 1 issue for voters is economy, @Politico poll finds. Voters also call manufacturing jobs a top economic concern: http://t.co/wN34O8kOwE 1 day 3 hours ago