Study: Trade deficit with China has cost nation 2.8 million jobs
A total of 2.8 million jobs, largely in manufacturing, have been lost as a result of the growing U.S. trade deficit with China since China’s entry into the World Trade Organization in 2001, according to a study released today by the Economic Policy Institute.
The greatest losses were in the computer and electronic parts industries, where 909,000 jobs were lost.
The report cited illegal currency manipulation as a major cause of the rapidly growing U.S. trade deficit with China. The Chinese yuan does not fluctuate freely against the dollar, but is artificially pegged in order to boost China’s exports, the report said.
China’s share of the total U.S. non-oil trade deficit rose from 69.6 percent in 2008 to 78.3 percent in 2010.
Growing imports of computer and electronic parts accounted for more than 44 percent of the $194 billion increase in the deficit between 2001 and 2010.
The report said 21,800 jobs were lost in Iowa. California had the largest number of jobs lost with 454,000.