Scott Paul, President of the Alliance for American Manufacturing, joined the America’s Work Force Union Podcast to discuss their recent report, SHOCKWAVES: The Ripple Effect of China’s Industrial Overcapacity on American Manufacturing and Factory Workers. Paul explained how the report is focused on raising awareness about the impact of excess goods and other bad trade practices from Chinese manufacturing companies.
The AAM released a report earlier this week outlining the potential impact of Chinese manufacturing and trade practices on the American economy. Paul talked about what he describes as “China Shock 2.0.” He discussed where the term comes from and how Chinese manufacturing companies previously harmed the American economy during the financial crisis in 2008.
In the report, the AAM focused on sounding the alarm bell of a similar trend that led to the 2008 financial crisis. Paul explained how American industries like glass, paper and tires were decimated by China’s overproduction of goods in the early 2000s. The overproduction of goods led to the dumping of Chinese goods into the American market, which negatively impacted the economy. Paul said the same trend is occurring today, and now the steel, solar and automotive industries are under threat.
According to Paul, America needs a more robust trade policy to properly address the dumping of Chinese goods in the American economy. A comprehensive trade policy would help the American manufacturing industry make a comeback and bring back good-paying union jobs. Paul discussed the need for trade enforcement tools and why trade allies are crucial to mitigating Chinese dumping. Finally, he discussed how a strong American market is key to the success of the global economy.
For more information on the report from AAM, please listen to the show above.