US-China Economic and Security Review Commission Releases Trade Trends Research Report
The U.S.-China Economic and Security Review Commission published on July 19 a new report on goods trade between China and the U.S. from 2012 to 2017. "This report describes and analyzes patterns in the U.S.-China trade relationship in 2012-2017 and is an update to a staff research report published by the Commission in November 2012," the governmental group said in an announcement. "In the 2012 to 2017 period, nonmanufactured exports remained strong, but the majority of growth occurred in a few select manufacturing sectors, most notably aviation, semiconductor machinery, and medical devices," it said. "The composition of U.S. imports remained concentrated in high-tech and industrial sectors, such as computers and electronics and machinery."
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The commission noted some major shifts since the previous report came out. Among the high-level findings were that "rising imports of manufactured goods from China had a negative impact on certain segments of U.S. manufacturing employment" and that the industries that benefit from increased exports from the U.S. to China have not made up those manufacturing job losses, it said. While the economic studies on such job losses "do not look at the net economic impact of increased trade with China, their findings have serious implications for future U.S. trade policy," it said. "U.S. policymakers should give due consideration to the enduring effects of the China trade shock while recognizing the new opportunities and increased purchasing power it has provided for U.S. workers and consumers."
The commission also said "U.S. export growth is limited by China’s protectionist measures." The Chinese government uses regulatory powers to advantage domestic companies over U.S. exporters, it said. "The Chinese government’s drive to create and acquire more intellectual property and to claim domestic and global market share for Chinese companies in cutting-edge industries means more unfair competition for U.S. importers and exporters over a larger portion of value-added industries." Since joining the World Trade Organization, "Chinese producers have gained considerable market share domestically and abroad," the commission said. "Now that Chinese companies in these industries are globally competitive, there is less need to protect them. The next generation of industrial policy initiatives -- such as Made in China 2025 -- aim to capture domestic and global market share in higher-value-added sectors, like robotics, advanced machinery, new-energy vehicles, and semiconductors."