China is attacking the U.S. with a stealth weapon of mass economic destruction – unfair trade. U.S. corporations – and China – that profiteer from it prefer to label this “free trade.”
But industrial carnage is the only way to describe the devastation done to the U.S. economy by an accumulated trillion dollar trade deficit with China, the destruction of U.S. jobs by off-shoring them to China, and the disintegration of the U.S. industrial sector that is foreclosing America’s ability to support itself or to manufacture weapons to defend itself.
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Much more significant, however, are other deliberate Chinese interventions in the market, such as the undervaluation of its currency, subsidization of its manufacturing, counterfeiting, forced transfer of American technology, and refusal to give American companies access to Chinese markets with licensing restrictions, complex regulations and local content rules.
China gives breaks to manufacturers on land, rent, energy and water. Manufacturers may receive bank “loans” they know they’re not required to repay. China also exempts certain industries from income taxes and gives tax rebates on exports.
China’s deliberate currency undervaluation works as a subsidy as well. The U.S.-China Economic and Security Review Commission explains it this way: “China’s undervalued currency encourages undervalued Chinese exports to the U.S. and discourages U.S. exports because U.S. exports are artificially overvalued. As a result, undervalued Chinese exports have been highly disruptive to the U.S.”
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America’s increased trade deficits with China since it entered the World Trade Organization have cost 2.3 million workers their jobs or job displacements, according to The China Trade Toll by Robert E. Scott of the Economic Policy Institute.
Most were manufacturing jobs, but, among them, Scott reports, were 127,710 professional, scientific and technical services workers. There were 66,986 managers of companies and enterprises. They even included 13,141 arts, entertainment and recreation workers.
Those, by any definition, are white collar jobs. ...
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