China's WTO entry didn't kill American jobs – it changed them

Editor's note: Anthony Chan, a special commentator on current affairs for CGTN, is former managing director and chief global economist at JPMorgan Chase & Company in New York City. The article reflects the author's opinions and not necessarily the views of CGTN.

More than two decades ago, on December 11, 2001, China officially joined the World Trade Organization (WTO). For some, that moment signaled the beginning of a slow bleed in American manufacturing. For others, it marked a turning point – a chance for the U.S. economy to evolve. Both are true. But here's the catch: If we focus only on the factories that shut down, we miss the complete picture of what happened to American jobs.

Let's start with the numbers. Since China's WTO accession, the U.S. has added 27.4 million non-farm payroll jobs. Yes, it lost 3.9 million manufacturing jobs, but gained 7.9 million in healthcare and social assistance alone. Other sectors, like professional services, education and logistics, also saw millions of new jobs. The truth is the U.S. economy didn't collapse – it changed.

The tradeoff no one wants to talk about

Manufacturing towns across America were gutted. That's not an exaggeration. Entire communities lost their economic foundations. These were real people, real families and real pain. No spreadsheet or economic model can erase that.

But we also must be honest: Those manufacturing jobs weren't stolen – they were outcompeted. China didn't force U.S. companies to move production overseas; the firms did it because it was cheaper, faster and often more efficient. Just as importantly, technology and automation played a massive role. The jobs didn't all go to China – many went to machines.

Meanwhile, American consumers shifted their spending from goods to services. They stopped buying as many things and started paying for experiences, education, wellness and information. The job market followed.

Blame China? Not so fast.

It's convenient to point fingers. China's rise certainly contributed to job dislocation. But it's not the whole story. According to the U.S. Customs, the share of Chinese exports to the U.S. fell from 21 percent in 2000 to 14.7 percent by the end of 2024. China has diversified. So has the U.S.

The more important takeaway? The U.S. now runs a service trade surplus with many of its major trading partners, including – surprisingly – China, the EU, Canada and Mexico. That's not the profile of a country losing its economic footing. That's a sign of strength.

Comparative advantage isn't just theory; it's reality. The idea of comparative advantage – the notion that countries should focus on what they do best – isn't just an Econ 101 slogan. The quiet engine has been reshaping the American workforce for years.

The U.S. is not as competitive in low-margin manufacturing as it used to be. But it is the global leader in software, biotech, logistics, finance and higher education. And the jobs in these sectors? They pay better, offer more stability and reflect where the world is going, not where it's been.

But we can't ignore the fallout. Economic evolution doesn't come without casualties. The U.S. government didn't do enough to help displaced workers. Instead of investing in large-scale retraining programs or assisting people to relocate to where the jobs are, millions were left behind.

If there's a lesson, it's this: Protecting dying industries isn't the answer. Preparing workers for the next wave is. That means serious investment in education, vocational training and mobility, not tariffs and nostalgia.

The bottom line

The U.S. didn't lose 3.9 million manufacturing jobs because it failed. It lost them because the economy evolved. And in return, it gained 27.4 million non-farm payroll jobs – many of them in industries that weren't vibrant a generation ago.

The debate over China's WTO membership will continue, but one thing is clear: Blaming globalization without offering solutions is a dead end. The real challenge is making sure every American has a fair shot at thriving in the economy they have, not the one they left behind.

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