Study: China has cost Colorado 45,000 jobs since 2001
The Denver Post
The U.S. trade deficit with China has cost Colorado more than 45,000 jobs since 2001, the Economic Policy Institute in Washington, D.C., estimates.
The EPI cites China’s refusal to let its currency float freely, subsidies of certain industries and the suppression of labor rights as giving the country an unfair advantage.
“Unless China raises the real value of the yuan by at least 40 percent and eliminates these other trade distortions, the U.S. trade deficit and job losses will continue to grow rapidly in the future,” study author Robert Scott warns.
The losses are calculated from 2001, when China joined the World Trade Organization, to 2008. The EPI estimates the U.S. has seen 2.4 million jobs lost or displaced during that period.
Labor and manufacturing groups said the study vindicated their call for a tougher stance with China on trade.
“China is cleaning our clock and they do so by cheating at the rules of world trade,” said Steven Capozzola, spokesman for the Alliance for American Manufacturing, a coalition of labor groups and manufacturers.
He said the Chinese aren’t just exporting T-shirts and pencils, but taking over high-end electronic goods, such as printed circuit boards.
By contrast, the largest U.S. export category to China is scrap items – metal and paper, Capozzola said.
The computer, electronic equipment and parts industries lost 627,700 jobs, or 26 percent of the total, because of the growing trade deficits, the EPI study estimates.
Colorado didn’t rank among the top 10 states for job losses, but its 1.9 percent job loss was higher than the U.S. average of 1.7 percent.