Unfair China Trade Costs Local Jobs2.4 Million Jobs Have Been Lost and Thousands Displaced in Every U.S. Congressional District as a result of Unfair China Trade policy. The growing U.S. trade deficit with China has displaced huge numbers of jobs in the United States and has been a prime contributor to the crisis in manufacturing em¬ployment over the past seven years. Moreover, the United States is piling up foreign debt, losing export capacity, and facing a more fragile macroeconomic environment.
Is America's loss China's gain? The answer is most certainly no. China has become dependent on the U.S. consumer market for employment generation, suppressed the purchasing power of its own middle class with a weak currency, and, most important, held trillions of dollars in hard currency reserves instead of investing them in public goods that could benefit Chinese households. Its vast purchases of foreign exchange reserves have stimulated the overheating of its domestic economy, and inflation in China has accelerated rapidly in the past year. Its