NAM takes first step to create China policy.

Jerry Jasinowski, president of the National Association of Manufacturers (NAM), has invited 12 of his board members for a meeting on May 22 to begin initial discussions on how the association should deal with China. "We're looking at what approach the NAM should take," says Frank Vargo, NAM's vice president of international economic affairs. "We have companies who are saying. 'We can't hack it any more,' and others are saying, 'Wait a minute, China is my only growth market in the whole world.'"

The board members at the "think session" will represent large and small manufacturing firms that will form the beginnings of an agenda that stresses a "positive, win-win approach" to China, says Vargo. "We know that trade [with China] cannot continue on the past trends," he says. The trade deficit with China is high and growing, but the United States should not turn protectionist.

The China trade issue "is starting to get serious," Vargo adds. "You cannot go anywhere and talk with manufacturers without China coming up. Most people are worried about it and some companies are saying, 'Anything you do is just too late for me. If you don't put on quotas, I'm out of business.'"