The historic first meeting between President Trump and Chinese President Xi Jinping is underway at Mar-a-Lago. While the news media will focus on U.S. – China issues such as North Korea and the South China Sea, most Americans have a singular concern—China’s unfair trade practices and how China’s cheating threats their job security. When President Trump sits down with the Chinese President, one would hope that he keeps the plight of the American worker close at mind.
Ironically, in the early 2000s when China joined the WTO, aluminum experts expected China to be a net importer. But, China has abused the rules. Fast forward to 2016, China produced more than half of the world’s aluminum without any natural comparative advantage other than unprecedented government support, causing a massive amount of excess production capacity to overhang the aluminum market. This has depressed prices by more than 45 percent, making it incredibly challenging for competitors to keep up.
The consequences in the U.S. are far and wide. A recent Economic Policy Institute report notes that the United States bears a uniquely large burden, suffering more than other countries from subsidized and dumped imports in these industries……
