Statement by AFL-CIO President Richard Trumka on the US China Economic and Security Review Commission's 2009 Report to Congress

For Immediate Release Contact: Eddie Vale 202-637-5279

STATEMENT BY AFL-CIO PRESIDENT RICHARD TRUMKA ON THE US CHINA ECONOMIC AND SECURITY REVIEW COMMISSION’S 2009 REPORT TO CONGRESS

November 19, 2009

The U.S. China Economic and Security Review Commission’s remarkable 2009 Report to Congress must be seen as a call to action. The report drives home the point that the Chinese government’s export led manufacturing strategy is driven by a full range of subsidies, many of which are illegal under both the WTO and our own trade agreements with China. These industrial policies begin with the most important illegal subsidy of all -- the continuing substantial undervaluation of the Chinese currency. The full range of subsidies includes land, loans, energy, water and tax incentives to attract foreign manufacturers for the production and export of higher technology products. The aggressive targeting of industry sectors and technologies with subsidies is bolstered by the promise of a workforce without any rights to form independent unions and environmental laws without enforcement.

The Commission’s observation that these industrial policies have been a “contributing factor to the imbalances that led to the global financial crisis” is dead on. They also make the case that, while the world struggles to recover from the current economic crisis, the economic strategy of the Chinese government sets the stage for even greater and more dangerous trade distortions. Ultimately, everyone will lose.

Over the past decade, millions of American workers and communities have come to know firsthand the economic insecurity and unemployment created by these policies. The 2009 report makes it clear that the United States needs a new strategic approach to our relationship with China as part of our nation’s economic strategy. Such an approach must begin by responding vigorously to the problems created by the Chinese economic strategy of massive trade subsidies.

The AFL-CIO urges Congress and the Administration to heed the finding of the 2009 USSC report and to take action on the key recommendations of this bipartisan panel.

Posted on November 20, 2009 in Economic Development.