by Summary:
Crack open an iPhone and you’ll begin to see why President Donald Trump’s ongoing trade war with China doesn’t make sense. On paper, imports of the popular smartphone and other goods from China look like a big loss to the U.S. The president certainly thinks so and has often cited the massive U.S.-China bilateral trade deficit – US0 billion in 2018 – as a reason to fight his trade war. When an iPhone X arrives in the U.S., it adds about 0 – its factory cost – to the deficit. All told, iPhones add tens of billions of dollars a year to the U.S. deficit with China, which is the gap between imports and exports. But, thanks to the globe-spanning supply chains that run through China, trade deficits in the modern economy are not always what they seem.… Start with the most valuable
Topics:
Mike Norman considers the following as important: Apple Computer, Sino-American trade war, US trade war
This could be interesting, too:
Crack open an iPhone and you’ll begin to see why President Donald Trump’s ongoing trade war with China doesn’t make sense. On paper, imports of the popular smartphone and other goods from China look like a big loss to the U.S. The president certainly thinks so and has often cited the massive U.S.-China bilateral trade deficit – US0 billion in 2018 – as a reason to fight his trade war. When an iPhone X arrives in the U.S., it adds about 0 – its factory cost – to the deficit. All told, iPhones add tens of billions of dollars a year to the U.S. deficit with China, which is the gap between imports and exports. But, thanks to the globe-spanning supply chains that run through China, trade deficits in the modern economy are not always what they seem.… Start with the most valuable
Topics:
Mike Norman considers the following as important: Apple Computer, Sino-American trade war, US trade war
This could be interesting, too:
Mike Norman writes RT — Beijing won’t just ‘watch Huawei be slaughtered on the chopping board’, company chief warns US
Mike Norman writes China to buy billion in U.S. farm products in return for tariff concessions-U.S. sources — Jeff Mason, Andrea Shalal, David Lawder
Mike Norman writes Is China Actually Stealing American Jobs and Wealth? John L. Graham and Benjamin Leffel
Mike Norman writes America’s War on Chinese Technology — Jeffrey D. Sachs
Crack open an iPhone and you’ll begin to see why President Donald Trump’s ongoing trade war with China doesn’t make sense.
On paper, imports of the popular smartphone and other goods from China look like a big loss to the U.S. The president certainly thinks so and has often cited the massive U.S.-China bilateral trade deficit – US$420 billion in 2018 – as a reason to fight his trade war.
When an iPhone X arrives in the U.S., it adds about $370 – its factory cost – to the deficit. All told, iPhones add tens of billions of dollars a year to the U.S. deficit with China, which is the gap between imports and exports. But, thanks to the globe-spanning supply chains that run through China, trade deficits in the modern economy are not always what they seem.…
Start with the most valuable components that make up an iPhone: the touch-screen display, memory chips, microprocessors and so on. They come from a mix of U.S., Japanese, Korean and Taiwanese companies, such as Intel, Sony, Samsung and Foxconn. Almost none of them is manufactured in China. Apple buys the components and has them shipped to China; then they leave China inside an iPhone.
So what about all of those famous factories in China with millions of workers making iPhones? The companies that own those factories, including Foxconn, are all based in Taiwan. Of the factory-cost estimate of $237.45 from IHS Markit at the time the iPhone 7 was released in late 2016, we calculate that all that’s earned in China is about $8.46, or 3.6% of the total. That includes a battery supplied by a Chinese company and the labor used for assembly....The National Interest
The Guts of an Apple Iphone Show Exactly What Trump Gets Wrong About Trade
Jason Dedrick, Greg Linden, Kenneth L. Kraeme