By Robert E. Scott, EPI Senior International Economist and Director of International Programs 

Although the trade deficit in goods fell overall, Chinese exports to the U.S. remain strong.  China’s share of the non-oil goods trade deficit jumped from 68.6% in 2008 to 80.2% in 2009, and China’s share has tripled since 2005.

China has captured a growing share of U.S. and world markets for manufactured products through a wide array of unfair trade practices including currency manipulation, export subsidies, widespread suppression of worker rights and wages, and tariff and non-tariff barriers to exports. It has purchased massive volumes of foreign exchange over the past decade in order to suppress the value of its currency.  China’s total foreign exchange reserves increased $453 billion to a total of $2.4 trillion in 2009. China took advantage of the rest of the world during the financial crisis by increasing its share of U.S. markets for manufactured products.  The United States should take a leadership role in organizing an effort to end China’s currency manipulation and other unfair trade practices.

See full analysis here.

The Economic Policy Institute (EPI) is an independent, nonprofit, nonpartisan research institute – or “think tank” – that researches the impact of economic trends and policies on working people in the United States and around the world.

Economic Policy Institute
Communications Department
1333 H Street, NW
Suite 300, East Tower
Washington, D.C. 200