U.S. Warned on China’s Aerospace Ambitions

The failure of U.S. policy makers to respond to the emergence of China’s aerospace industry will have far-reaching consequences for this nation’s economic and national security, said IAM leaders in testimony before the U.S.-China Economic and Security Review Commission.

“In order to fully understand the threat that China’s aerospace industry poses, it is essential to begin with a summary of the current state of U.S. aerospace employment,” said Owen Herrnstadt, Director of IAM Trade & Globalization Department. “Over 600,000 jobs have been lost in the total U.S. aerospace industry since 1990. Several hundred thousand more workers have lost their jobs in related industries.”

Herrnstadt cited “offsets” among the methods China is using to extract aerospace technology and manufacturing jobs from the U.S. and other countries. “China is one of the most aggressive countries in pursuing offset agreements,” said Herrnstadt, who appeared at the hearing in Seattle with District 751 President Mark Blondin and IAM Aerospace Coordinator Dick Schneider.

According to a report prepared for the hearing by Robert Scott, senior international economist at the Economic Policy Institute, the soaring U.S. trade deficit with China is also responsible for jobs lost in every state, with the highest numbers from California, Illinois, New York, Pennsylvania and Texas.

“What is really shocking is the rate that China has moved into the production of high-skill, high-technology products,” said Scott. “China is now entirely responsible for our $32 billion deficit in advanced technology products like computers and electronics.”

The IAM urged U.S. policy makers to counter China’s growing influence by quickly addressing the trade deficit, adopting measures to mitigate the negative impact of offsets and to enforce internationally recognized labor standards.