The U.S. ran a  dreadful $268 billion trade deficit with China in 2008, and if you're wondering just what that bountiful surplus means for China, Natasha Chart at the Campaign for America's Future has some strong words.  She looked into how China is doing and observes that "China Inc." is managing just fine:

China Inc's global growing pains...China manufacturing growth accelerates, survey shows...Volkswagen to construct new manufacturing plant in China...Chinese economy on pace to overtake Japan's by 2010...Eastman Chemical acquires cellulose-based specialty polymer maker in China...

Chart says it isn't just that "employment is going down in the US, the quality of employment is going down."  One key problem is that lost U.S. manufacturing also means an "erosion of the capacity to innovate." Simply put, it's not just jobs lost to China, it's the nation's future prospects that are dwindling.  Some might say we're a broken record here at ManufactureThis, but can anyone doubt that we desperately need to solve the "China Problem?"