Report claims 4,660 Iowa jobs threatened by Chinese paper industry subsidies
4:15 pm in economy, business and finance by George C. Ford

Process team member Scott Hintze is at a bench board that operates the press section of one of the two paper machines at International Paper's Cedar River Mill in Cedar Rapids. A report issued Wednesday by the Economic Policy Institute, a non-partisan think tank, says 4,660 jobs at Iowa paper manufacturing plants are at risk due to heavy Chinese subsidies to that country's paper industry. Cliff Jette/SourceMedia News
A report issued Wednesday claims that 4,660 Iowa workers could see their jobs disappear due to government subsidies to China’s paper industry and a tripling of that country’s production over the last decade.
The Economic Policy Institute, a nonpartisan think tank, said China’s rapid rise in the global paper industry has been fueled by more than $33 billion in government subsidies from 2002 to 2009. The full report is available at www.americanmanufacturing.org
“China’s massive subsidies to its paper sector are doing severe damage to the U.S. paper industry, its workers and their families,” said Scott Paul, executive director of the Alliance for American Manufacturing. “The only way to stop the bleeding is for U.S. policymakers to take action against China’s blatant violations of trade laws, including sweeping subsidies to paper and many other industries.”
China’s export-driven paper industry has added 26 percent of new production capacity on average every year since 2004, increasing the U.S. trade deficit with China. Imports from China’s paper industry to the United States are rising faster than those from any other country.
The report estimates the annualized growth rate of Chinese paper and paper-product imports into the U.S. was 22 percent as of February.
China, which lacks the natural resources to fuel the growth of its paper industry, is the world’s largest importer of wood pulp and recycled paper.
International Paper, which operates a recycled cardboard mill in southwest Cedar Rapids, regularly competes with China for waste cardboard.






