This chart shows why China is so desperate to protect its industries

A recent analysis conducted by the Federal Reserve Bank of San Francisco shows how much US consumers spend on imports once money spent locally is subtracted to sell the good. Examples of money spent locally would include the cost of trucking, rent, and workers’ wages.

 

Excerpt:

If you look at the headline data, in 2017, about 11% of what American households spent went toward imported goods. But that “Made in China” or “Made in Mexico” label is deceptive. Only some of the final price that American consumers pay goes to the country where the good is actually made. A fair chunk gets pocketed by US companies and workers.

For instance, the authors cite a 2014 study that found that an Asian factory that assembles a $100 pair of Nike sneakers earns only around $25. The container shipping company pockets $3.50, while Nike collects $22 for licensing and other intellectual property. And a whopping $50 goes to the US retailer, defraying costs of rent, insurance, trucking, warehousing, and the wages of salespeople

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Source: This chart shows why China is so desperate to protect its industries | Quartz

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