US Study Says China’s 5-Year Plans Hit 1.6 Million American Factories, Driving Job Cuts
Updated
Updated · South China Morning Post · Jun 8
US Study Says China’s 5-Year Plans Hit 1.6 Million American Factories, Driving Job Cuts
1 articles · Updated · South China Morning Post · Jun 8
Summary
A study spanning China’s 10th to 13th five-year plans found US plants in industries Beijing targeted suffered job losses, weaker investment and more closures.
Data from 1.6 million American factories and 1.1 million Chinese firms linked those setbacks to China’s state-backed push into selected sectors.
In China, industries favored by the plans posted 12% to 15% gains in employment, investment and output within a single plan cycle.
The researchers said the pattern reflects a global replacement of production capacity, with China expanding exports to third markets as US exports there retreated.
As China outpaces U.S. exports to the Global South, how can America regain its economic influence in these emerging markets?
Beyond tariffs, what long-term strategy can the U.S. adopt to counter China’s state-driven industrial model?
With China targeting AI and green tech, how can Western industries avoid a repeat of the first 'China Shock'?
The China Shock’s Lasting Impact: U.S. Manufacturing Decline, Policy Response, and the Global Industrial Power Shift
Overview
The U.S. manufacturing sector is under significant economic strain, with employment dropping from 19.6 million in 1979 to 12.8 million by 2019, reflecting a long-term shift toward service industries and a 35% reduction in jobs. This decline has continued, with recent figures showing only slight monthly gains amid an overall downward trend. The persistent job losses are linked to global trade pressures, especially from China’s industrial policies, which have intensified competition and contributed to regional income declines. As manufacturers adapt, they face ongoing challenges in workforce retention and the need for strategic policy responses to remain competitive.