An analysis just released by the Federal Reserve Bank of San Francisco concludes that most of what Americans spend on consumer goods, electronics, clothing, sneakers and the like, stays in America. Surprisingly little comes from China after all. Say the authors:
Goods and services from China accounted for
only 2.7% of U.S. personal consumption expenditures (PCE) in 2010…Chinese imports make up only a small share of total U.S. consumer spending.........In 2010, imports were about 16% of U.S. GDP. Imports from China amounted to
2.5% of GDP..........About 55% of the amount spent on goods made in China stays in the U.S. as well, in the form of transportation costs, wholesale and retail marketing expenses, and labor. Put another way,
$276 billion was spent in 2010 on consumer goods labeled “Made in China” compared to the total consumer spending of
$10.2 trillion, and $153 billion of that stayed in the United States......In another example, the retail price of an iPhone in 2009 was about $500, but it only cost $179 to produce it in China. However, only about $6.50 of that $179 represented assembly costs in China. The other $172.50 consisted of the parts that were produced in other countries, including $10.75 for parts made in the United States.