In 2011, U.S exports rose by 14.4 percent to a record US$2.1 trillion. That’s the good news. The bad news is that imports also set an all-time high record of US$2.7 trillion, a 13.8 percent increase over 2010. It's really not that hard to realize that the result is a deficit of 0.6 trillion – or US$558 billion, to be exact.
More than half of this trade deficit is with China, a startling US$295.4 billion. Even though U.S. exports to world's most populated country rose by 13.1 percent to US$103.9 billion, it was offset by a 9.4 percent increase to a record US$399.3 billion in imports from China.
The auto industry was amongst those sectors that set new deficit records: last December alone marked an increase of US$1.8 billion in imported vehicles, parts and engines.
Leo W. Gerard, president of United Steetworkers (USW), criticized President Obama’s trade policy and claimed that is has led to the loss of more than 400,000 jobs in the U.S. automotive sector since 2000.
“Albert Einstein is credited with saying that ‘insanity is doing the same thing over and over again and expecting different results’”, said Gerard. “It’s time to update and reform our nation’s trade policies and be more aggressive about enforcing our trade laws. Following the same old approach is insane.”
Gerard cited a series of reports released in January by the USW, the UAW and a coalition of manufacturing companies, which shows that in 2011 alone the trade deficit in auto parts with China was US$9.95 billion – and no less than US$62 billion in the last decade.
“Next week, Chinese Vice President Xi, who is widely expected to be his country’s next leader, will be coming to Washington, D.C.”, said Gerard. “Press reports indicate that he wants to address the ‘trust deficit’ between our countries. But America’s workers are more interested in addressing the trade deficit.”
The USW president said that other countries, such as Japan and Brazil, were also part of the problem, but he stressed that the biggest threat the American automotive industry is facing, comes from China. "1.6 million U.S. jobs are at risk unless China's illegal trading practices are curtailed," said Gerard.
1 Comments:
I agree with Donald Trump. China should pay a 35% tax to the US on exports to America. They can offset the tax against the US debt we owe to China if that makes it any easier.
The mass transfer of jobs to China is largely due to American Companies seeking the lowest possible labor costs, with the Investment Banker types greatly facilitating the process, or directly causing it.
America's high industrial labor costs of Union's like the UAW could have, and should have, been solved by the American Democratic system. Why is the UAW allowed to be a monopoly to the auto industry anyway. GM at one time was under government investigation for a possible forced split-up when it was close to controlling over half of the US auto market. ( Ah, those were the days )
I know Congress could never solve this kind on issue, but the Supreme Court could and should have.
After all, China is a Communist non democratic society, and is murderous to boot.
Why is our Govt so in love with the Communist's.
I seem to recall a lot of our military people were killed by Communist China in the Korean War.
China has, and continues, to every Patent and copywright law there is in order to sell us things cheaper.
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