Is "Made In China" A "Bridal Gown" For The United States?

Last month's excess trade deficit Later, some people began to advocate global imbalances. According to this logic, Balance of trade surplus The bigger this means that Sino US economic relations are more distorted. Some people say, "buy the United States" and leave us money in the United States, so that the Chinese do not suck it away.

But can the surplus really measure the impact of "made in China" commodities on the US economy? Maybe not.

The Federal Reserve Bank of San Francisco wrote in an "economic letter" that when American consumers buy a piece of Chinese made goods, a large part of the money they pay is still in the US dollar in circulation.

Why is that? The reason is that if you buy a pair of shoes of 70 dollars, the cost of the shoe itself is only a small part of the $70. Most of the rest of the money is spent on rent, wages, storage, advertising and spanportation.

According to San Francisco Federal Reserve Bank According to the calculation, 88.5% of consumer spending is actually spent on "made in the United States", including the service charge that accounts for the largest consumption expenditure. In fact, only 2.7% of US consumer spending is spent on Chinese made goods themselves. It is even said that even the 2.7% figure is slightly higher.

Products labeled "made in China" account for 2.7% of US consumer spending, while 1.2% of them reflect the cost of imported goods. So, on average, each purchase of "made in China" goods costs US $1, and 55 cents to buy American services. In other words, because electronic products and clothing can get higher retail and wholesale profits than other goods and services, the profits from the "made in China" products of the United States are much greater than those of other imported commodities.

Because Chinese made goods are usually low-end goods like T-shirts or shoes, or high profit DVD players and TV sets, from the data point of view, "made in China" contributes more to the US than goods from Germany or Japan.

In addition to making consumers more comfortable with Chinese made baking machines sold in US Department stores, Inflation The problem is also explained. If Chinese products account for only 2.7% of consumer spending, consumers in Ohio are unlikely to feel the pressure of rising labor prices in factories in Guangdong, China.