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: not just exports. Another critically important promise made by the promoters of liberalized U.S.-China trade was that the United States would benefit because of increased exports to a large and growing consumer market in China. This market, in turn, was to be based on an expansion of the middle class that, it was claimed, would grow rapidly due to the wealth created in China by its entry into the WTO. However, the increase in U.S. exports to China has been overwhelmed by the growth of U.S. imports, as shown below. Growing trade deficits and job losses
The U.S. trade deficit with China has increased from $50 billion in 1997 to $235 billion in 2006, an increase of $185 billion, as shown in Table 1. Between 1997 and 2001, prior to China’s entry into the WTO, the deficit increased $9 billion per year on average. Between 2001 and 2006, after China entered the WTO, the deficit increased $30 billion per year on ave
rage. While it is true that exports support jobs in the United States, it is equally true that imports displace them. The net effect of trade flows on employment must look at the trade balance. The employment impacts of growing trade deficits are estimated in this paper using an input-output model that estimates the direct and indirect labor requirements of producing output in a given domestic industry.