The Manufacturing Alliance for Productivity and Innovation (MAPI) just released a report entitled “The U.S. Trade Deficit in Manufactures and the Chinese Surplus Continue to Rise in 2012, But at Very Different Paces”.
- The Chinese trade surplus in manufactures rose by 24 percent in the first half of 2012, following 23 percent growth in 2011 and 27 percent in 2012; a calendar 2012 $817 billion surplus is projected;
- The U.S. deficit rose by 7 percent in the first half of 2012, down from 12 percent growth in 2011 and 24 percent in 2012; a calendar 2012 deficit of $495 billion is projected;
- The two imbalances are connected by the extremely lopsided bilateral trade, with U.S. imports from China more than six times larger than exports; in the first half of 2012, the U.S. deficit with China rose by $13 billion, compared with a $15 billion increase in the global deficit;
- The $169 billion three year increase in the U.S. global deficit, from 2009 projected to 2012, resulted in a 700,000 to 1.4 million trade-related loss of American manufacturing jobs, including 130,000 to 260,000 jobs in 2012.
- The $500 billion annual U.S. current account deficit—principally the result of the trade deficit in manufactures—as well as the budget deficit have thus been financed in large part by foreign central banks buying U.S. Treasurys.