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Current Trade Deficit:   AmericanEconomicAlert.org - Presented by The Robert A. Stranahan Lectures
‘PNTR’ Spells Job Loss in US, Recent Studies Say
Wednesday, January 23, 2013
“These studies strongly reinforce a conclusion that we came to in the late 1990s, which is that trade expansion with China, especially WTO entry, was mainly not about enabling U.S.-based manufacturers to supply China,” says Alan Tonelson, a research fellow at the U.S. Business & Industrial Council Educational Foundation, a Washington research group.

Instead, he says, “It was to create the opportunity for U.S. companies to go to China and set up factories and labs and hire workers, at a much lower cost, in a much less regulated production environment, where substantial subsidies are available,” and then sell things back to the United States and the rest of the world.

Tonelson added: “Market access to China was never the priority; it was the pretext, and the pretext only.” He says the real supporter of the plan was multinational companies which fill the coffers of politicians’ electoral campaigns, and were keen to lower their costs of production by shifting manufacturing to China.


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