2. Major Issues in International Trade
Currency manipulation
China and other Asian countries keep the value of their currencies artificially low to make their exports cheaper and imports more expensive
Subsidies
China has provided billions of dollars in subsidies, directly and indirectly, to its steel industry
Attempts to weaken the trade laws
Multinational corporations that want to be able to rely on dumped and subsidized merchandise
Climate change
Some solutions would encourage U.S. manufacturing to move to China and elsewhere, leading to greater greenhouse gas emissions

3. U.S. Dollars per Chinese Yuan Exchange Rate (1993-2008)
Source: Pacific Exchange Rate Service

4. Illegal and Abusive Subsidies
Discounted Land Costs
Discounted Energy Costs
Low Cost Loans
Debt Forgiveness
Lack of Environmental Compliance

5. Chinese Steel Production 1996-2010
Estimated
647 mmt by 2010
Total Production of Crude Steel – International Iron & Steel Institute (IISI), Steel Statistical Yearbook 2007 and Crude Steel Statistics 2007

6. U.S. Trade Deficit 1997-2008 China will account for over 28%
of the U.S.
Trade Deficit
in 2008!
(2007 projection based on monthly average through October 2007.)
U.S. Trade in Goods with World (Seasonally Adjusted) in Billions of Dollars through June 2008 (projected through Dec. 2008); U.S. Census Bureau

7. Trade Deficit Manufacturing Jobs
(Not Seasonally Adjusted Figures. For Data, see Document # )
Manufacturing Jobs
Source: U.S. Census Bureau, U.S. Bureau of Labor Statistics

8. U.S. Manufacturing Jobs (in thousands)
March 1998
17.6 Million Jobs
August 2008
13.4 Million Jobs
Over 4 million manufacturing jobs have been lost since manufacturing peaked in 1998

9. North Carolina Manufacturing Jobs
Nearly One of Every Three North Carolina Manufacturing Jobs Has Been Lost in the Last Decade.

10. Endangered Manufacturing Industries
41%
38%
45%
46%
52%
50%
59%
44%
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics Survey, Not Seasonally Adjusted

11. The State Crisis: Manufacturing Jobs Lost June 1998 to December 2007

12. The Multinationals’ View
Large multinational manufacturers and trading companies (“MNCs”) generally oppose any strengthening of the trade laws
Their chief focus is maximizing worldwide profits, not achieving maximum production and employment in the United States
These companies have a vested interest in bringing dumped and subsidized imports into the United States
Because of their size, they have substantial political clout

13. U.S. - China Direct Investment (2000 – 2007)
$28.32 Billion
U.S. direct investment position abroad. The value of U.S. direct investors’ equity in, and net outstanding loans to, their foreign affiliates. The position may be viewed as the U.S. direct investors’ net financial claims on their foreign affiliates, whether in the form of equity (including reinvested earnings) or debt.
(charts)
(interactive data)
$1.1 billion
Source: The U.S. Bureau of Economic Analysis, Direct Investment, Direct Investment Position on a Historical-Cost Basis

15. Major Issues in International Trade
Currency manipulation
China and other Asian countries keep the value of their currencies artificially low to make their exports cheaper and imports more expensive
Subsidies
China has provided billions of dollars in subsidies, directly and indirectly, to its steel industry
Attempts to weaken the trade laws
Multinational corporations that want to be able to rely on dumped and subsidized merchandise
Climate change
Some solutions would encourage U.S. manufacturing to move to China and elsewhere, leading to greater greenhouse gas emissions