Title: China Trade, Outsourcing and Jobs: Growing U.S. trade deficit with China cost 3.2 million jobs between 2001 and 2013, with job losses in every state | Economic Policy Institute
Headings: China Trade, Outsourcing and Jobs
China Trade, Outsourcing and Jobs
:
Growing U.S. trade deficit with China cost 3.2 million jobs between 2001 and 2013, with job losses in every state
Briefing Paper #385
The U.S. trade deficit with China has increased since China entered into the WTO
U.S.-China goods trade and job displacement, 2001–2013
The growing trade deficit with China has led to U.S. job losses
Trade and employment models
Cumulative U.S. jobs displaced by growing goods trade deficit with China, 2001–2013 (in thousands of jobs)
The trade deficit and job losses, by industry
Change in U.S. goods trade with China, by industry, 2001–2013
Net U.S. jobs created or displaced by goods trade with China, by industry, 2001–2013
Job losses by state
Net U.S. jobs displaced due to goods trade deficit with China as a share of total state employment, 2001–2013
Touch a state to show data
Net U.S. jobs displaced due to goods trade deficit with China, by state, 2001–2013 (ranked by jobs displaced as a share of total state employment)
Job losses by congressional district
Net U.S. jobs displaced due to goods trade deficit with China as a share of total congressional district employment, 2001–2013
Hover or select a district to view data
20 congressional districts hardest hit by U.S. goods trade deficit with China, 2001–2013 (ranked by jobs displaced as share of district employment)
Other research confirms job losses from U.S.-China trade
Lost wages from the increasing trade deficit with China
Summing up the overall impact of the growing U.S.-China trade deficit on jobs and wages
It’s not an accident: Addressing the causes of trade-related job losses
Currency manipulation is a major cause of the trade deficit
Policy remedies to address currency manipulation
Other illegal laws, regulations, and policies are also responsible for the large U.S. trade deficit with China
Police remedies to address other violations
Another crucial missing link: Foreign direct investment and outsourcing
Failed expectations of a growing Chinese market for U.S. goods
Conclusion
About the authors
Acknowledgments
Appendix: Methodology
Estimation and data sources
Data requirements
Analysis
Step 3. Congressional district analysis
Endnotes
References
Supplemental Table 1
Net U.S. jobs displaced due to goods trade deficit with China, by state, 2001–2013 (ranked by net jobs displaced)
Net U.S. jobs displaced due to goods trade deficit with China, by state, 2001–2013 (sorted alphabetically)
Net U.S. jobs displaced due to goods trade deficit with China, by congressional district, 2001–2013 (ranked by jobs displaced as share of total district employment)
*Subcategory and overall totals may vary slightly due to rounding.
Net U.S. jobs displaced due to goods trade deficit with China, by congressional district, 2001–2013 (sorted alphabetically by state)
U.S. goods trade with China, by industry, 2001–2013 (in billions of nominal dollars)
* Excludes utilities, construction, and service sectors, which reported no goods trade in this period.

Content: These indirect wage losses were nearly five times greater than the direct losses suffered by workers displaced by China trade, and the pool of affected workers was nearly 40 times larger (100 million non-college-educated workers versus 2.7 million displaced workers). The U.S. trade deficit with China has increased since China entered into the WTO
Proponents of China’s entry into the World Trade Organization (WTO) frequently claimed that it would create jobs in the United States, increase U.S. exports, and improve the trade deficit with China. 4 In 2000, President Bill Clinton claimed that the agreement then being negotiated to allow China into the WTO would create “a win-win result for both countries.” Exports to China “now support hundreds of thousands of American jobs,” and these figures “can grow substantially with the new access to the Chinese market the WTO agreement creates,” he said (Clinton 2000, 9–10). China’s entry into the WTO in 2001 was supposed to bring it into compliance with an enforceable, rules-based regime that would require China to open its markets to imports from the United States and other nations by reducing tariffs and addressing nontariff barriers to trade. Promoters of liberalized U.S.-China trade argued that the United States would benefit because of increased exports to a large and growing consumer market in China. The United States also negotiated a series of special safeguard measures designed to limit the disruptive effects of surging imports from China on domestic producers. However, as a result of China’s currency manipulation and other trade-distorting practices, including extensive subsidies, legal and illegal barriers to imports, dumping, and suppression of wages and labor rights, the envisioned flow of U.S. exports to China did not occur. Further, the agreement spurred foreign direct investment (FDI) in Chinese enterprises, which has expand