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The China Syndrome

The Philter
The Philter
The Philter
11/9/2004
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4:44 PM -- More grist for the offshoring mill...

Back in October, The U.S.-China Economic and Security Review Commission released a study titled “The Changing Nature of Corporate Global Restructuring: The Impact of Production Shifts on Jobs in the U.S., China, and Around the Globe.” The findings, interestingly, help somewhat explain why jobs lost in the U.S. are most often linked to outsourcing to China.

Here's an excerpt:

Altogether we found announcements or confirmations for shifts of 48,417 jobs out of the US to other countries in January-March including 23,396 to Mexico, 8,283 to China, 3,895 to India, 5,511 to other Latin American countries, 4,419 to other Asian countries, and 2,933 to all other countries. Based on our estimates that media tracking captures approximately two-thirds of production shifts to Mexico and about a third of production estimates to other countries, these data suggest that in 2004 as many as 406,000 jobs will be shifted from the US to other countries compared to 204,000 jobs in 2001.

Based on our estimates, as many as 99,000 jobs are shifted from the US to China and 140,000 jobs will be shifted to Mexico this year compared to approximately 85,000 jobs to each country in 2001. However, because more than a third of the shifts to China were simultaneous shifts to multiple destinations in Latin America, Asia, or other regions of the world, jobs lost from shifts to China are often directly linked to job losses to other countries both, near and off shore.

— Phil Harvey, News Editor, Light Reading

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