Cost of living in China: Cheap!
Buy Made in China products Benefits U S may surprise you.
Search this month the Federal Reserve Bank of San Francisco shows that for every dollar spent on an item-made China, 55 cents to US companies for services such as marketing and sales last year, 2 7 of US consumer spending went to products made in China, according to the study.
The results may surprise US consumers, given the widespread belief that most of the spending is on items manufactured abroad, says Bart Hobijn, research adviser at the San Francisco Fed who co-wrote the report with economist Galina Hale But consumer spending means much more than shopping, he said that if you get a haircut, pay your electricity bill, go to the movies, the art of consumption.
The research comes amid a heated debate over the value of goods manufactured abroad that the US unemployment rate fell slightly to 9 1 July after rising for three consecutive months remains high data point the complexity of the business relationship the US -China, and how countries interlinked, economies have become.
Overall, the vast majority of goods and services sold in the US are manufactured in the country, the Fed's San Francisco researchers found shoes and clothing are an exception, with nearly 36 US dollars spent on items made in China, against 25 of US -made products.
Some products, including clothing, are no longer manufactured in the United States at competitive prices or in commercial quantities, said Craig Shearman, spokesman for the National Retail Federation Thus ISN t matter if you are the source of China against the United States but China against India or China vs Vietnam.
Retailers stock foreign products, Shearman adds, to provide consumers with affordable options.
Yet inflation and rising labor costs in China, it can be a matter of time before US consumers see higher prices, said Dennis Yau, CEO of the Federation of Hong Kong Industries, a trade group for manufacturers, many factories in the Pearl River Delta.
While the price rise could be seen in the industries of commodities and clothing, overall, China's inflation consumers won t U S hit hard by the rise, said Hobijn.
Even as the U S buys goods from China, it also sells aggressively in this market from 1 to 3 billion consumers.
China has become the third largest export market behind Canada and Mexico and the fastest growth in the United States.
From 2000 to 2010, U exports of electronics, agricultural products and others to China have increased 468-91 9 billion, while exports to the world increased by 55, according to the US Business Council -China.
Frankly, you do not hear enough about the export history, said Erin Ennis, vice president of US-China Business Council, which represents US companies that do business with China, we export more to China more jobs we support here.
Yet the US has a record trade deficit with China, which means that it buys more than it sells In 2010, the US imported 364 $ 9 billion of Chinese products, nearly four times the value of its exports to China, according to the US International trade Commission Meanwhile, the US market share of foreign products imported into China fell to 7 from 10 in the last decade, according to the United States - China Business Council.
US manufacturers claim that production outsourcing in China cost Americans jobs jobs are lost, for example, in industries such as apparel manufacturing as production shifts to factories in China The Obama administration has also argued that the undervalued currency of China, making Chinese exports cheaper, hurting American manufacturers and boosts unemployment in the United States.
But the commercial partnership, Washington, D C company that consults businesses on trade issues, estimated that nearly 1 million jobs exist because national U S goods imports from China.
Because we import from China, prices are cheaper, consumers have more money in their pocket, and they go out and spend more, generating a greater number of US jobs that are lost, said Laura Baughman president of the Partnership for trade.
If the US Pares return on products manufactured abroad, it could hurt domestic companies and Chinese manufacturers, Baughman adds, because products such as semiconductors manufactured in America are sent to abroad to be integrated into televisions and computers, then come back with the Made logo China.
Even if you feel that some products are made in China, there's a lot of value to U S companies, said Yingying Xu, an economist at the Manufacturers Alliance, a group of public policies for the U S. manufacturers
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