Reminder: Most of what you pay for a ‘made in China' product goes to U.S. workers and businesses
Added 01-11-19 06:30:23am EST - “A good may have been assembled in a Chinese factory, but that assembly cost is just a small part of the purchase price. Most of what you spend on something that's ostensibly from China goes to U.S. workers and businesses.” - Washingtonpost.com
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Posted By TheNewsCommenter: From Washingtonpost.com: “Analysis | Reminder: Most of what you pay for a ‘made in China’ product goes to U.S. workers and businesses”. Below is an excerpt from the article.
Analysis Interpretation of the news based on evidence, including data, as well as anticipating how events might unfold based on past events
About 56 percent of what you pay for something “made in China” goes to U.S. workers and companies, on average, according to a new analysis released by the Federal Reserve Bank of San Francisco.
The rules are complicated, but “made in China” roughly indicates a good was assembled in a Chinese factory. Its parts, design, marketing and distribution may have come from anywhere — and that “anywhere” is often the United States.
[Why we all follow a broken statistic that overstates the trade deficit with China, and how we could fix it]
China is the United States’ largest trading partner. Companies import goods from China in part because their lower cost allows higher retail markups. That means more of what consumers spend goes to those companies and, indirectly, their workers.
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