China trade: Myths vs. reality

China trade: Myths vs. reality
Chinese goods account for 2.7 percent of U.S. personal consumption expenditures, about one-quarter of the 11.5 percent foreign share.
Chinese imported goods consist mainly of furniture and household equipment; other durables; and clothing and shoes.
In the clothing and shoes category, 35.6 percent of U.S. consumer purchases in 2010 were items with the “Made in China” label.
Much of what China sells us has considerable “local content.” Hale and Hobijn give the example of sneakers that might sell for $70.
They point out that most of that price goes for transportation in the U.S., rent for the store where they are sold, profits for shareholders of the U.S. retailer, and marketing costs, which include the salaries, wages and benefits paid to the U.S. workers and managers responsible for getting sneakers to consumers.
On average, 55 cents of every dollar spent on goods made in China goes for marketing services produced in the U.S.