It is about 400 billion a year in
2017. Are our products not competitive, or China has been setting up too many
trade barriers? I believe both are true to some extent.
The figure is exaggerated a
little. The raw materials are sent to China to assemble using lower-wage labor
and sent them back to the US as finished products.
Using iPhone as an example, it is
designed in US, assembled in China, using rare earth elements in China, using
components from all over the world, and enjoyed by global consumers. The design
cost should be deducted from the finished product when it is imported back to
the US.
Our politicians suggest heavy
tariffs on Chinese products. Most likely Chinese will fight back with same and
it would lead to a trade war. Both sides will suffer. They will end and the
politicians from both sides will declare victory. Seen this many times.
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The above is from my book "Profit from coming market crash" available from Amazon.com.
https://www.amazon.com/dp/B078NYR9DD
The above is from my book "Profit from coming market crash" available from Amazon.com.
https://www.amazon.com/dp/B078NYR9DD
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