USW President Leo Gerard says, “America and China share a terrible delusion. They are in denial about currency manipulation. Both officially state that China is not devaluing its currency.”
##
Even the London Telegraph recognizes that something must be done about China’s currency manipulation:
It is ever more apparent that it would be in China’s domestic interests to allow an upward adjustment in the currency. By reducing the cost of imports, it would take the pressure off inflation and also in time help to reduce the country’s dependence on exports for growth. Yet China won’t do it under threat of trade retaliation while for many in America, small annual adjustments in the currency are not good enough. I’m not suggesting China must always be humoured and appeased in the hope it eventually comes around to Western ways of thinking.
##
San Diego, California: Kyocera’s first solar manufacturing plant in the U.S. will pop up in San Diego, bringing with it 75 American jobs. The global solar manufacturing giant has plants in other countries as well, but with its first U.S. presence, the company will be catering to Buy America provisions in the federal stimulus package.
The plant is good news in more ways than one. In addition to aligning with Sen. Charles Schumer’s (D-NY) bill that would require federal funds to be used only for domestic materials when it comes to clean-energy projects, the installation of solar panels adds a great deal of value to a home.
Sen. Schumer said in a statement, “It is a no-brainer that stimulus funds should only go to projects that create jobs in the United States rather than overseas.”
And, according to an article in the San Diego Union-Tribune, “Existing law already requires some projects — those in certain public-works facilities — to use U.S.-made solar panels.”
##
As the Pittsburgh Post Gazette is reporting, U.S. Treasury Secretary Tim Geithner is scheduled to visit Pittsburgh today, where he will be “greeted by a chorus of calls to bolster ailing U.S. manufacturers by taking action against China’s currency and trade policies.”
The Post Gazette article cites a recent report from the Economic Policy Institute (EPI) showing that the four congressional districts in the Pittsburgh region have lost a combined 17,500 jobs due to the U.S. trade deficit with China. Overall, the report points to 2.4 million American jobs lost to China since 2001.
An interactive map by the Alliance for American Manufacturing illustrates these job losses by state. A quick check of the map shows Pennsylvania having lost 95,400 jobs to China since 2001.
Hopefully, Sec. Geithner will take note of this as his Treasury Department prepares its semi-annual report on currency. That report could designate China as a currency manipulator, which would be a helpful step for U.S. manufacturers and their workers who are stuggling to compete against heavily subsidized exports from China.
##
The State of California: The Bay Area of California shed 6,700 jobs during February, a setback that erodes hopes the region’s feeble economy will revive soon. Many of these job losses took place in professional services.
The loss of these white-collar professional jobs should not be a complete surprise, however, as a new EPI report shows the U.S. losing 627,700 hi-tech jobs due to the U.S. trade deficit with China since 2001. Much of this hi-tech job loss took place in the Bay Area. Click here for an interactive map showing California job loss by Congressional district.
###
The Treasury Secretary gets acquainted with manufacturing today.
Some Chinese economists are calling for a rise in the value of the yuan.
The U.S., South Korea, France, Canada and the UK call out China on imbalances and exchange rates. (registration required)
Private payrolls unexpectedly decline in March.
Here’s a nice change: trying to sell a Brooklyn waterfront property to attract light manufacturing.
##
Bonnie Homan, the manager of Mill Town Cafe in Green Bay, WI, speaks about the difficulties of maintaining her business, which is located near a struggling paper mill. Her cafe depends on the mill, and feeds a steady stream of mill workers before and after their shifts.
U.S. Treasury Secretary Tim Geithner will be in Pittsburgh tomorrow, Wednesday, March 31, to talk manufacturing with industry leaders. Sec. Geithner has plans to meet with USW President Leo Gerard as well as United States Steel CEO John Surma to discuss the nation’s current economic and manufacturing crises.
Here’s a look at Pennsylvania jobs lost due to the trade deficit with China.:
PA Statewide Statistics:
You can access more Pennsylvania-specific information, including job loss broken down by Congressional district, here.
A chief concern for Pennsylvania’s manufacturers and their workers is unbalanced trade with China due to dumping, subsidies, and currency manipulation. You can read more here.
##
Last week, the Alliance for American Manufacturing (AAM) held a national press conference call to discuss the findings of a new report by the Economic Policy Institute (EPI) which shows that the trade deficit with China cost the U.S. 2.4 million jobs between 2001-2008.
AAM Executive Director Scott Paul and EPI’s Research Director Rob Scott were joined on the call by Sens. Charles Schumer (D-NY) and Lindsey Graham (R-SC). The discussion focused on not only the new report, but also on China’s continued currency manipulation, which is harming U.S. manufacturers as well as their workers.
In the wake of the report, and a hearing in Congress last week, Sen. Schumer has been leading the charge to press for action on the currency issue. Yesterday, at an event in upstate New York, Schumer announced that he and 15 Senate collegues, both Democrat and Republican, are co-sponsoring a bill that would impose tariffs on Chinese goods if the Chinese government continues to peg its yuan artificially low against the dollar.
Schumer stated: “The point we’re making to the Chinese…you don’t play by the rules, we’re going to make you play by the rules.”
##
