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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (21047)	1/11/2005 2:09:49 PM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

[So who cost those millions of lost jobs in China???]--"China's Trade Surplus Costs 1.5 Million U.S. Jobs, Report Says" Jan. 11 (Bloomberg) -- China's expanding trade surplus with the U.S. caused the displacement of 1.5 million jobs since 1989, affecting a broader array of industries than expected, a U.S. report for a congressionally mandated commission found. About 984,000 jobs were lost from 1989 through 2001 as China's trade surplus climbed from $6 billion to $83 billion, Robert Scott, the study's author, found. The rate of job losses accelerated since 2001, when China joined the World Trade Organization, as the surplus surged to a record $124 billion. China's trade surplus is estimated to have exceeded $150 billion last year, a Bloomberg survey of 67 economists shows, driven by an increase of advanced technology imports such as machinery, electronics and transport equipment. ``The assumptions we built our trade relationship with China on have proved to be a house of cards,'' Scott said in a statement. ``Everyone knew we would lose jobs in labor-intensive industries like textiles and apparel, but we thought we could hold our own in the capital-intensive, high-tech arena.'' The report commissioned by the U.S.-China Economic and Security Review Commission, calculates the difference between job opportunities from exports and jobs displaced because of imports from China from 1989 through 2003. The calculations tally both jobs lost and jobs that weren't created. ``The loss of these potential jobs is just the most visible tip of China's impact on the U.S. economy,'' the report read. Scott's conclusions must be reviewed by the commission, and some of the findings may be included in the official reports to Congress. The panel has 12 members, including former Republican Senator Fred Thompson and William Reinsch, president of the National Foreign Trade Council. Scott is an economist at the Economic Policy Institute, which is funded partly by labor unions and focuses on the economic condition of low- and middle-income Americans. `Up the Ladder' The report comes as lawmakers and manufacturers increase pressure on China to curb subsidies, revalue its currency and clamp down on counterfeiting of trademarked goods. U.S. Commerce Secretary Donald Evans is visiting Beijing this week meeting with the leadership to bring the message that pressure from the U.S. ``will not let up,'' he said. The report indicates that pressure on U.S. industries from Chinese imports may only increase. Annual job losses attributed to trade with China increased from 70,000 a year from 1989 to 1997 to 234,000 a year in 2001 to 2003, the study said. Those losses come as the trade balance for computer equipment and machinery went from surplus to deficit. ``China has widely diversified and expanded the base of its industrial structure and exports to the United States over the past 14 years, moving rapidly up the production technology ladder as it has done so,'' according to the report. Five of the hardest hit states from China trade are Maine, Arkansas, North Carolina, Indiana and California, the report read. The commission is holding a hearing in Seattle on Jan. 13 to examine issues related to trade with China and the technology and aerospace industries in the Pacific Northwest. \http://quote.bloomberg.com/apps/news?pid=10000103&sid=aNjWVnWBvwrg&refer=news_index