Manufacturing Savvy

Strong Headwinds Against Insourcing

Scott Paul, executive director of the Alliance for American Manufacturing had a few things to say about the correlation between the record high deficit with China and the call for insourcing jobs in the U.S.


"There is no question that our $295.5 billion annual trade deficit with China is an economic and political challenge. From an economic point of view, the trade deficit with China shows just how strong the headwinds are against "insourcing" jobs back to the United States.

"From a political point of view, the trade deficit with China shows just how little leadership Congress and the president are providing on international economic matters. House Speaker John Boehner could allow a vote on bipartisan legislation to deter China's currency manipulation; the bill would pass overwhelmingly. But he won't, despite pleas from domestic manufacturers and many fellow Republicans.

"The Obama Administration could designate China as a currency manipulator, but it has chosen to take a pass six consecutive times. Administration officials could directly criticize Beijing's practices when Chinese Vice President Xi Jinping visits next week. Instead, they will be trumpeting a few commercial deals in a carefully choreographed stage play.

"China's economic policiessubsidies, state-owned enterprises, intellectual property theft, forced technology transfer, currency manipulationare now the single largest impediment to job growth in America.

"Manufacturing in the United States can flourish, but only if the playing field is level. Voters overwhelmingly believe that China's trade practices are a threat to our nation's economic security. They also believe Washington is doing nothing to respond. We can't afford to listen to more promises when action is needed today."

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