More than 400,000 jobs in the U.S. auto supply chain have been lost 2000-2010. One major problem is China’s persistent violations of international trade laws, and another 1.6 million U.S. jobs are at risk unless those violations end, according to three separate reports released in January of 2012.
From 2000-2010, the U.S. lost 400,000 auto-parts manufacturing jobs. Over the same period, the U.S. auto-parts trade deficit with China grew from $9.5 billion to $31.2 billion.
China’s auto-parts industry received $27.5 billion in direct subsidies from 2001-2011, a big reason why its products sell for up to 50 percent less than those made elsewhere around the globe.
In addition to subsidies, the sector benefits from an array of other government policies, including export restraints, technology transfer requirements, and domestic content rules.