The GOP and the G20

Posted by admin on 09/24/2009

 When leaders of the world’s largest economies meet at the G20 Summit this week in Pittsburg, the massive U.S.-China imbalance will be at the top of the agenda for the American delegation. Americans have become very aware of China ’s widespread economi When leaders of the world’s largest economies meet at the G20 Summit this week in Pittsburg, the massive U.S.-China imbalance will be at the top of the agenda for the American delegation. Americans have become very aware of China ’s widespread economic cheating, substandard manufacturing practices, and the collective damage it has done to America’s economy, consumer safety and national security.  And they’ve had quite enough of it, thank you. Ten years ago when China acceded to the WTO and was awarded Permanent Normal Trade Status with the U.S., it agreed to follow the rules of trade as our manufacturers do.  Absent a few public displays of adherence, it has done little to comply with regulations on intellectual property, environmental protections, government subsidies, floating its currency and providing market access to trade partners. The U.S. has lost five million manufacturing jobs since 2000 – at least 2.3 million directly attributable to our trade imbalance with China.  These include not just production workers, but administrative, information technology, research and development, and management as well.  Yet China has reported an uptick in its manufacturing sector over the past three months and is heading toward its highest manufacturing output since 2004. For the U.S. to force China to adhere to the trade agreements it signed will take political will by both of America’s major political parties.  But as labor in the manufacturing sector is overwhelmingly unionized, it has always been considered the purview of Democrats.  Free market conservatives who demonstrate concerns about specific trade issues are reflexively and derisively labeled “protectionist.” I have spent countless hours on conservative talk radio over the past few years commenting on China’s cheating, substandard products, the loss of U.S. manufacturing and its affect on our military readiness – yet no host or caller has ever yelled “protectionist!” at me. Voters are concerned with consumer safety problems with Chinese goods, that the country holds enough U.S. debt to rattle our financial cage at any time, and that manufacturing job loss here has hindered domestic sourcing requirements for our military. The positive reaction I’ve received from grassroots activists, faith and family conservatives and the GOP faithful when discussing China-U.S. issues demonstrates that their party shouldn’t ignore constituents’ concerns on these topics. The GOP should not abandon foundational principles about global trade and commerce, but should not use manufacturing job loss to draw distinctions between their party and the Democrats either, as the Republican party often gives the impression that they have no empathy for the plight of laid-off workers, struggling families and devastated communities.  Just from the fiscal perspective alone, every lay off is accompanied by a greater burden on all taxpayers. Republicans should start by acknowledging manufacturing job loss and consumer safety problems as they relate to China, and develop market-based reforms to turn the ship around.  If not, they will stay on the margin in many states and devastated communities throughout the country.

1 comment

Kerri Toloczko wrote 3 years 34 weeks ago

Stephen, thank you for your

Stephen, thank you for your comments. I chuckle to myself at your "red flag" analogy as I think it also serves as a double entendre in this case.

Perhaps we need to start a "Jasmine Tea Party" to call attention to these issues.

Stephen J. Schoonmaker wrote 3 years 34 weeks ago

A most excellent

A most excellent article.

Have you ever tried to get comments/information from Ross Perot? I think a large majority would agree that the red flags he was raising are coming to fruition. I am not saying he should necessarily run for office, but an independent party (or just the serious threat of one) is probably the most efficient path to knocking down the China threat.

Don't forget Richard Nixon appointed George Bush the First as the first ambassador to Communist China. I never understood why Democrats did not make more of the long history of Bushes becoming wealthy from the China trade (no such ambassador would not gain something from their "influence"). I think nothing is made of it since Democrats are making as much from the China trade as the Republicans. Bill Clinton seemed pretty enamored with China, as well.

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