Title: Costly Trade With China: Millions of U.S. jobs displaced with net job loss in every state | Economic Policy Institute
Headings: Costly Trade With China
Costly Trade With China
:
Millions of U.S. jobs displaced with net job loss in every state
Briefing Paper #188
False promises
Growing trade deficits and job losses
Conclusion
References
Endnotes

Content: Others in the White House, such as Kenneth Liberthal, the special advisor to the president and senior director for Asia affairs at the National Security Council, echoed Clinton’s assessment: Let’s be clear as to why a trade deficit might decrease in the short term. China exports far more to the U.S. than it imports [from] the U.S….It will not grow as much as it would have grown without this agreement and over time clearly it will shrink with this agreement. 2
Promises about jobs and exports misrepresented the real effects of trade on the U.S. economy: trade both creates and destroys jobs. Increases in U.S. exports tend to create jobs in the United States, but increases in imports tend to destroy jobs as imports displace goods that otherwise would have been made in the United States by domestic workers. The impact of changes in trade on employment is estimated here by calculating the labor content of changes in the trade balance—the difference between exports and imports. Each $1 billion in computer exports to China from the United States supports American jobs. However, each $1 billion in computer imports from China displaces those American workers, who would have been employed making them in the United States. On balance, the net employment effect of trade flows depends on the growth in the trade deficit;