Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

China isn’t stealing American jobs, it’s just created 400,000 of them in Boston

China isn’t stealing American jobs, it’s just created 400,000 of them in Boston

The Chinese ambassador to the United States, Qin Gang, was recently presented a plaque of recognition and a commemorative jacket by the Massachusetts Port Authority (Massport) and the International Longshoremen's Association (ILA), a major labor union.
This happened because the China Ocean Shipping company opened a direct vessel service from China to the Port of Boston in 2002. Over the next 20 years, this has not only saved 9,000 jobs but also created another 400,000, drawing praise from the local government and community.

Yes, you read that right.China helped create hundreds of thousands of jobs in the United States – and it's a perfect example of what could be to come if both countries focused on win-win cooperation. You would not be able to read about this in mainstream US media, however, it’s been virtually ignored.

Last year trade between the US and China grew, which could mean potentially new Chinese investment into the US, as it was for US investment into China over the past few decades, which rose to new heights again last year. China and the US, instead of being rivals as portrayed by the mainstream narrative, could be partners, working together in innovative ways to rejuvenate the American economy and workforce.

The conventional view we’ve heard for so long – that China is stealing American jobs – deserves some dissection. This belief is not only at the core of what helped former President Donald Trump ascend to power, but a pivotal part of the left-wing movement spearheaded by Senator Bernie Sanders during his two presidential campaigns and was later absorbed by President Joe Biden.

This conventional thought, in essence, goes that globalization has been a bad deal for America. Corporations have outsourced and offshored jobs to other markets, including moving the country’s entire industrial base from the American heartland to places like China. Moreover, it is China, in collaboration with those dastardly corporations, that proponents claim has stolen American workers’ livelihoods, triggering attendant social problems, such as declining life expectancy.

But this is too simplistic and ignores the fact that this is a fundamental economic challenge across the world and throughout history. It also creates a hostility where there doesn’t need to be one, and ignores the reality that China can help create American jobs.

The first thing to note is that this is a systemic occurrence that has nothing to do with individual actors, whether it’s China or the US corporations that are ‘stealing’ American jobs. It’s a natural result of innovation in an economy.

To see why this is, we have to understand that not all unemployment is the same. Of the three main types that you learn in economics, there’s this one called structural unemployment. This is the kind of unemployment that happens when there’s a mismatch between workers and the skills needed for the economy, which primarily happens because of major technological breakthroughs. Think horse-and-buggy drivers put out of work by the automobile.

As many Americans rush to file taxes at the beginning of this year, they may not be aware that tax filings were outsourced to places like India in the early 2000s after which, at this point, it has been pretty much automated. But consider, what’s the point of having US financial experts rummage through mundane tax filings, while they could be having face time with clients about their financial planning or the creation of new enterprises?

From a purely economic point of view, this simply makes sense. But, of course, this has a human cost when we consider that it cuts down on the domestic labor demand in the US and requires financial experts to learn new skills that allow them to provide better customer service. Those workers that can adapt will remain and prosper, and those that can’t, unfortunately, have to move on.

This is not a new or unforeseen problem at all. Every single major economy without exception has had to manage a shift from primarily relying on goods to relying on services, including now China. What matters are the government policies that address the situation and, on this, the US has sat on its hands and done nothing while the problem festered. Experts were discussing this issue for decades and the government simply did nothing.

The problem is that the political consensus in Washington has been opposed to even the most modest social reforms if the Build Back Better program’s recent death at the hands of ‘moderate’ Democrats in Congress tells us anything. Instead, that same consensus has put the blame on foreign countries, namely China – but this is a counter-productive mindset.

That’s because China is the world’s second-largest economy and is leading efforts to connect the global economy, which, in plain English, means it is creating a lot of jobs in the same process that is destroying the outdated jobs of the past.

It’s doing this around the world with its Belt and Road Initiative (BRI), the largest global infrastructure project in history, as well as by leaning into globalization through efforts such as the Regional Comprehensive Economic Partnership (RCEP), the world’s largest free-trade zone.

As we saw in the Port of Boston, barrier-free trade and a new service route from the Chinese mainland helped create hundreds of thousands of jobs in the area. But just imagine the potential for jobs – and for the world – if there was a new political consensus in Washington. That instead of confrontation with China, there was cooperation. Think Richard Nixon 50 years ago with his ‘week that changed the world’.

For example, President Biden recently signed into law a $1 trillion infrastructure package that is expected to create about 1.5 million jobs per year over the next 10 years. Still, this falls woefully short of what America needs – and that’s why the country needs not only grander infrastructure ambitions but a Green New Deal to build new infrastructure, modernize and retrofit existing infrastructure, as well as create high-quality jobs.

Wouldn’t China’s engineering expertise, its edge in renewables and its appetite for investment in tangible assets, help make this a success?
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×