Recent claims that China’s manufacturing growth is responsible for job losses in the United States are sparking debate among experts. U.S. Treasury Secretary Scott Bessent has suggested that China’s share of global manufacturing should be capped at 30%, arguing that China’s rise has led to significant American job losses.
However, a closer look at the data tells a different story. The decline in U.S. manufacturing jobs didn’t begin with China’s entry into the World Trade Organization (WTO) in 2001. Instead, it’s part of a long-term trend spanning over five decades, largely driven by automation and technological advancements.
“Blaming China oversimplifies a complex issue,” said one economic analyst. “Automation allows factories to produce more with fewer workers, which is a significant factor in the reduction of manufacturing jobs.”
Between 2001 and 2024, the U.S. saw manufacturing employment decrease by 3.6 million jobs, yet the manufacturing output value increased by $800 billion. This shift signifies not a loss of industry but an evolution toward more advanced production methods and a transition of the workforce into sectors like management and professional services.
China’s manufacturing growth has been primarily to meet its own domestic demand. In fact, five-sixths of China’s manufacturing output is consumed domestically, with the proportion steadily rising. Additionally, 60% of China’s exports are intermediate goods used in production processes worldwide, including in the U.S.
Limiting China’s share of global manufacturing could lead to unintended consequences, such as supply shortages. “Artificially capping production doesn’t align with market principles and could disrupt global supply chains,” experts warn.
Rather than attributing domestic challenges to foreign competitors, some suggest that addressing internal policies and investing in workforce development might be a more effective approach for the U.S.
“It’s essential for countries to focus on innovation and adaptability,” said another commentator. “Collaboration, not confrontation, will pave the way for mutual economic growth.”
