The Made in China Bugaboo, Part 2

The Chinese sell us mainly furniture and household equipment. Also durables. clothing and shoes. In the clothing and shoes category. A bit more than a third of U.S. consumer purchases in 2010 had a "Made in China" label.

But China sells us what is described as "local content." Hale and Hobijn mention sneakers. Most of that price goes for transportation in the U.S., expenses for the store where they are sold, marketing costs, profits for shareholders of the U.S. retailer, and, the salaries, wages and benefits paid to the U.S. workers responsible for getting sneakers to consumers.

About 89% of what U.S. consumers spend is on items made in the country, the bulk in the form of domestic services. These include housing, transportation, medical care, and so on. That accounts for up to about two-thirds of spending. On average, of every dollar the U.S. consumers spend on a Chinese-made product, about 55¢ pays for services in the US. (See the Earl J Weinreb NewsHole® comments.)