Minnesota a big loser in China trade deficit

Minnesota ranks sixth in the nation in terms of job losses due to the trade deficit between the United States and China, according to the Economic Policy Institute (EPI), a liberal think tank, and the Alliance for American Manufacturing (AAM), a joint lobbying effort of labor and manufacturing industries.  In a report last week, the two groups noted that the computer, electronic equipment and parts industries are most affected by the trade deficit.

The report says that Minnesota has lost 58,800 jobs since 2001 because the Chinese government engages in currency manipulation (a charge the Chinese deny). Minnesota ranks sixth in job losses as a share of total employment, following New Hampshire, North Carolina, Massachusetts, California and Oregon.

“These findings document what we have been asserting for some time,” said AAM Executive Director Scott Paul in a statement last week. “China is undercutting the competitiveness of our manufacturers and undermining the earning power of American workers by routinely failing to honor its global and bilateral commitments.”

The EPI report ranked congressional districts by jobs lost. Three of Minnesota’s Congressional districts ranked in the top 50: Rep. John Kline’s district ranked 22nd, Rep. Tim Walz’ district was 26th, and Rep. Erik Paulsen’s was 31st.

“China’s cheating is causing America to lose more than just the capacity to make widgets in the one-sided trade arrangements with China,” said AAM’s Paul. “Sophisticated electronics and high-tech products that once were made in the United States are increasingly being made in China instead. We are losing more and more of these good jobs.”