As the U.S.- China relationship continues to deteriorate, the role of trade has come under increasing scrutiny. Commercial exchanges between the two countries used to be the ballast of the relationship. Trade was understood to benefit both countries economically and helped reduce tensions on political and strategic issues.
Has Trade with China Really Cost the U.S. Jobs?
The political narrative doesn’t stand up to the research.
November 10, 2022
HBR Staff/wera Rodsawang/-goldy-/Getty Images
Summary.
How did trade with China affect the United States? In Washington, the consensus is that it cost Americans jobs. But that’s not necessarily the case. The authors review a series of research papers on the topic and document a more nuanced set of findings. Trade with China — the so-called “China Shock” — did cost some regions of the U.S. manufacturing jobs. But it may not have led to fewer jobs overall, as other studies found increased employment in services.