24,740 Illinois Jobs at Risk as China Primes Global Overcapacity in Paper
WASHINGTON – Heavily subsidized by the Chinese government in violation of global trading rules, the Chinese paper industry has tripled production over the past decade, killing jobs throughout the United States and driving up the massive U.S. trade deficit with China, according to a report released today by the Economic Policy Institute (EPI).
The EPI report, No Paper Tiger: Subsidies to China’s Paper Industry from 2002–2009, says that China’s rapid rise in the global paper industry has been fueled by more than $33 billion in government subsidies from 2002 to 2009. The full report can be found at www.americanmanufacturing.org.
The U.S. paper industry is large and highly competitive, employing 474,000 workers in nearly 5,000 plants in the 2005–2007 period. However, thousands of U.S. paper producers, and the more than 470,000 remaining jobs, are at risk due to the rapid growth of highly subsidized paper exports from China. Almost every state has workers in the paper sector, with California, Georgia, Illinois, Ohio and Wisconsin having the highest number of paper industry workers.