Is China stealing American jobs? No, it’s not theft but those jobs are leaving.

An original answer based on my Quora.com response.

Since the 1970’s, China, with the largest population worldwide, has been opening up its economy. Any industry it grows in is going to reverberate globally more so than other comparable nations because of the population alone. For example, look into the global scare that happened when textile regulation ended. Numerous countries were justifiably worried because of China’s population and expertise in textile.

In the 1990’s America further liberalized its economy with a sharp easing of regulation; this spurred American FDI (foreign direct investment) in other countries to soar. FDI can be thought of physically as actually building the factory and hiring the workers (all that takes an investment, right?). Because of deregulation, it was more profitable to move production to a place where it’s cheaper to produce and less expensive on labor. Why do they do this? American consumers demand quick, cheap and highly variable products. American companies are maximizing their profits and also trying to satisfy American consumers.

It’s as simple as that, and if you are told otherwise, please, critically question it.

60% of all Chinese exports are from foreign-owned companies. So, 60% of what China sells is because of foreign corporations desiring it. (A Trade War with China?, Neil Hughes, 2005).

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