By Ian Swanson - 03/23/10 04:48 PM EDT
Texas and California were the hardest hit but every state has experienced job losses because of increased trade from China, according to the report from the left-leaning Economic Policy Institute.
North Carolina was also hit hard according to the report. That state has seen textile, furniture and other small manufacturing industries shrink as companies faced competition from lower-priced Chinese goods.
While the report said low labor costs in China are a big reason for the trade deficit, it also blamed China’s currency manipulation.
China pegs its currency to the U.S. dollar so that it rises and falls with fluxuations in the dollar’s value. Critics say this means China’s currency is undervalued, and that it lowers the price of Chinese exports while making U.S. exports to China more expensive.
Sens. Charles SchumerCharles SchumerSenate faces critical vote on Puerto Rico Juan Williams: GOP sounds the sirens over Trump Gun-control supporters plan next steps versus NRA MORE (D-N.Y.) and Lindsey GrahamLindsey GrahamDefense contingency misuse threatens national security Gun-control supporters plan next steps versus NRA Bipartisan gun measure survives test vote MORE (R-S.C.) have introduced legislation to make it easier for companies to petition the government for tariffs on Chinese products because of currency manipulation.
The two senators are expected to hold a press call Tuesday afternoon on the report.
The report said China has purchased U.S. Treasury bills and other securities to keep the Chinese currency pegged to the U.S. dollar.
China has $2.4 trillion in currency reserves, much of which is thought to be in U.S. dollars.
China’s purchases of U.S. Treasury bills has helped the U.S. finance its debt without raising interest rates, but this has also made Chinese exports to the U.S. less expensive.