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How to Save American Manufacturing Guest Commentary content from Machine Design
U.S. manufacturing wasn’t in bad shape up to about the year 2000. That’s when a lot of manufacturing plants started to close and massive job losses began. What happened that year to cause this decline?
Before the year 2000, China’s trade status had to be renewed annually by Congress. The renewal was always controversial and uncertain. So companies were reluctant to invest in China or send work there because they were never sure they would be able to bring in Chinese-manufactured products. But in 2000, Congress enacted a law that gave China permanent normal trade relations. That meant the uncertainty was gone. Companies started making investments in China because they knew the trade status was permanent. And in 2001, China became part of the World Trade Organization (WTO). These two events started massive manufacturing-job losses in the U.S.
Congress, hmmmm, 2000? Who was in charge of congress?
Thought so.
U.S. manufacturing wasn’t in bad shape up to about the year 2000. That’s when a lot of manufacturing plants started to close and massive job losses began. What happened that year to cause this decline?
Before the year 2000, China’s trade status had to be renewed annually by Congress. The renewal was always controversial and uncertain. So companies were reluctant to invest in China or send work there because they were never sure they would be able to bring in Chinese-manufactured products. But in 2000, Congress enacted a law that gave China permanent normal trade relations. That meant the uncertainty was gone. Companies started making investments in China because they knew the trade status was permanent. And in 2001, China became part of the World Trade Organization (WTO). These two events started massive manufacturing-job losses in the U.S.
Congress, hmmmm, 2000? Who was in charge of congress?
Thought so.