History shows that cooperation with China has always served the United States well. When the two countries broke the ice in 1972 and established diplomatic relations in 1979, the volume of trade between them exploded. China’s accession to the World Trade Organization in 2001 has given a tremendous boost to globalization, of which the United States has been one of the main beneficiaries.
Connected with buyers and sellers around the world, the United States has maintained and expanded its leadership position in the global economy, with American businesses focusing on the higher end of the value chain and innovation.
China paid $1.9 billion in royalties to other countries for the use of intellectual property in 2001. In 2018, it paid $35.6 billion in intellectual property royalties, of which 8.64 billion in the United States, nearly a quarter of the total. And U.S. goods exports to China have grown from $26 billion in 2001 to nearly $150 billion in 2017, according to the U.S.-China Business Council, with China becoming the third-largest market for U.S. goods, versus the 11th in 2001.
And despite the trade war that the previous US administration launched against China and the COVID-19 pandemic, China has remained the United States’ third-largest export market, behind US neighbors Canada and Mexico.
The value of US goods exported to China in 2021 was $149 billion, and exports of goods and services to China support 858,486 US jobs, according to the US-China Business 2022 report. American Export Council.
Indeed, contrary to claims by the previous US administration that China has “robbed American jobs”, new studies highlighted by an influential Washington-based think tank and a leading US university show that US trade with China was not essential to the loss of American jobs.
The losses were limited to the manufacturing sector, which represents a small part of the US labor market, and they were offset by gains in non-manufacturing sectors. That’s the conclusion reached by the Washington-based Center for Strategic and International Studies and the Stanford Center on China’s Economy and Institutions in a report released Friday.
But while service jobs have increased on the West Coast and the Northeast of the United States, manufacturing jobs have been lost in central and southern regions, which anti-China political forces have exploited. US policymakers should know that the healthy development of China’s economy benefits both countries. And with the headwinds created by the COVID-19 pandemic yet to abate, China’s resilient economy is a powerful engine for the global economy.
The Communist Party of China Central Committee’s report delivered to the 20th CPC National Congress on Sunday pointed out that, “China is committed to its fundamental national policy of opening up to the outside world and pursuing a strategy of mutually beneficial opening up.” “
It’s time for US policymakers to recognize that politicizing trade with China and adopting protectionist measures are hurting the United States.