U.S. manufacturing trade deficit with China increases

U.S manufacturing exports did not perform so well during the second quarter compared to Chinese exports, according to a recent report by the Manufacturers Alliance for Productivity and Innovation (MAPI).

As noted by an article on Manufacturing.net, U.S. manufacturing exports increased by 3 percent when compared to 2013, to a total of $304.6 billion. Meanwhile, Chinese exports rose by 6 percent to $549.3 billion.

"China is clearly pursuing an export-led growth strategy to stimulate lagging GDP growth, including very large official foreign currency purchases to lower the exchange rate, and is achieving robust industrial growth, much if not most of which is for export," Ernest Preeg, MAPI senior advisor, told the news source. "These sharply divergent trends for the dominant trading sector, which account for 75 percent of U.S. merchandise exports and 95 percent of Chinese exports, raise important questions about the trade policy course ahead."

As a result of this shift, the U.S now has a manufacturing trade deficit of $89.8 billion. This is almost 20 percent higher than the figure from a year ago.

It is clear that the U.S. manufacturing sector is recovering. In July alone, the nation gained about 28,000 manufacturing jobs. However, as long as China continues to emphasize its sector to a greater degree, domestic manufacturing in the U.S. will face heavy competition that will hold back growth.

This is why it is important for U.S. policymakers to pursue business-friendly policies that facilitate the development of CNC machining companies. Their services are crucial to the overall success of the industry.