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Bipartisan Report Shows U.S. Must Move Aggressively on China’s Illegal Acts
The 2009 report to Congress by the bipartisan U.S.-China Economic and Security Review Commission (USCC) is a call to action for the United States to move aggressively against China’s illegal moves in the global economy and to create an industrial strategy to rebuild our manufacturing base, several experts said today.
During a telephone press conference sponsored by the Campaign for America’s Future, Carolyn Bartholomew said China has developed a plan to build national wealth and increase its power and influence in the world and the United States has not.
Bartholomew, who chairs the USCC, said the commission found that China employs a wide range of subsidies that include land, loans, energy, water and tax incentives to attract foreign manufacturers for the production and export of higher technology products. State-owned banks also provide massive loans to industries producing over capacity. Click here to read the report.
As AFL-CIO President Richard Trumka says:
The report drives home the point that the Chinese government’s export-led manufacturing strategy is driven by a full range of subsidies, many of which are illegal under both the WTO [World Trade Organization] and our own trade agreements with China. These industrial policies begin with the most important illegal subsidy of all—the continuing substantial undervaluation of the Chinese currency.
Bartholomew warned that a side product of our growing trade deficit with China is that as more business goes abroad, the technology that we have developed for aircraft, computer chips and other products go with it. She related how the Army recently had a problem buying domestically made triggers for its rifles because the tool-and-die industry is so decimated.
Clyde Prestowitz, president of the Economic Strategy Institute, just returned from a trip to China and said the reality of the global economy is that some countries like China don’t always play by the rules of free trade. Although the United States should not emulate China’s illegal actions, lawmakers should develop a deliberate and well-planned strategy to build national wealth, create jobs and protect our national security, he said.
Writing on the Campaign for America’s Future website, Scott Paul, executive director of the Alliance for American Manufacturing, says Obama should have insisted that China play by the global rules of free trade.
China, I believe, wants to be treated with the dignity and respect of a rising economic power. The Obama administration should have made clear exactly how that could have been accomplished: playing by the rules of global trade, achieving balance in its current account, and taking steps to ensure that more Chinese are able to share in the country’s prosperity.
Trumka says the 2009 report
makes it clear that the United States needs a new strategic approach to our relationship with China as part of our nation’s economic strategy. Such an approach must begin by responding vigorously to the problems created by the Chinese economic strategy of massive trade subsidies.
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6 Comments
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it is about time American take our country back from China which has been sold to them by past presidents by free trade agreements and big business by purchasing only Chinese made products. Nearly all our business dealing goes through China. We will either have to accept Chinese citizenship or emancipate America from China,
It’s about time we started to push back the Corporatist blindness towards China’s ripping off our technology, moving it to China, and then screwing our workers when they make the product there, and the same manufacturing Corporation that gave away the technology, benefiting by the rip off when they sell it here! The only gain is recieved by the rich guys and the poor workers in China.
This report is good but what does it tells us that we don’t already know. The biggest problem is that corperate America has no problem with selling out to China. Why, because they aren’t going to suffer from it. It is the vast majority of working class American people that will. But they also contribute to the problem by shopping at WalMarts because all they are interested in is how cheap that they can buy something for.
Here’s a way to help poor American workers right here in America:
http://www.petitionspot.com/petitions/joblessinamerica
Please sign this petition and save American jobs–for Americans!
As long as the Chinese businesses are rewarded, they have no incentive to change.
Yes, they own a big chunk of American debt. I would favor a tax increase to set aside monies to pay off these folks and other (like Arabs, Japanese–on and on).
When our fearless leaders fear that folks will cash in their chips and allow blackmail/extortion, time for a change.
The economy will never truly recover for Main street until we start making and buying American. Some of the politicans benefit from poverty on mainstreet and time to think about getting them out.
I don’t like anti freeze in my toothpaste, harmful lead deposits in my children,s toys, poison in my dog Fido’s food and poison on the milk fed to the Chinese people and idling thousands of American factories.