AAM Executive Director Scott Paul made the following comments regarding the visit of China's President:
"The United States risks losing its place as the world's leading economy unless we take a firmer stance against China's mercantilist economic practices. It is critically important for President Obama to tell President Hu that the time has come for a more balanced economic relationship. Currency manipulation, market-distorting subsidies, and harmful barriers to trade must be eliminated for the benefit of a global economic recovery.
"The President deserves credit for enforcing our trade laws when cheating exists. However, that commitment will mean little if further progress is not made during this official state visit.
"American manufacturing companies and their workers will be keenly watching and hoping for progress that will allow us to compete on a level playing field."
Specifically, AAM believes that the Obama-Hu meeting will be a missed opportunity if the following issuesare not addressed in a candid and forthright manner:
The stakes of the Obama-Hu meeting couldn't be higher. A troubling trend is developing in which the United States is losing its grip as the leading economy in the world:
· The U.S. has lost its position as the world's leading high-technology exporter.
· A recent survey found that 77% of global firms say they plan to build their new research and development facility in China or India.
· China is poised to lead the world in patent application filings in 2011, surpassing both the U.S. and Japan.
· In 2010, China passed the United States as the world leader in auto sales.
· The U.S. has lost 2.4 million jobs since 2001 due to our massive and growing trade deficit with China.
· China accounted for 83% of the U.S. non-oil goods trade deficit in 2009.
· In 2010, manufacturing was viewed by American voters as the most important sector to the overall strength of the American economy and for our national security.
· In 2010, 83 percent of American voters expressed support for tariffs on Chinese imports if they continue to cheat through their trade policies.