Trade Deficit with China Costs 2.3 Million Jobs

The vast and growing U.S. trade deficit with China has had a "devastating effect on U.S. workers," causing 2.3 million manufacturing, high-tech and other jobs to be lost or displaced between 2001 and 2007, according to the Economic Policy Institute.

Economists said jobs in all 50 states have been affected by the trade deficit, which skyrocketed during the Bush administration from $84 billion in 2001 to $262 billion in 2007.

Displaced workers, those who found new jobs, saw their earnings drop by more than $8,000 on average. EPI said that in 2007 along, their lost income totaled $19.4 billion.

"The U.S-China trade relationship needs a fundamental change," EPI said. "Addressing the (currency) exchange rate policies and labor standards issues in the Chinese economy are important first steps." A full report on the China trade imbalance is available online at www.epi.org.