It is not cheaper to make things in China. It is more profitable. That is a different economic concept, one that has made the 1% rich at the expense of the rest of us. Here are four hidden costs that are not revealed on a Made-in-China price tag.
China's Vice President Xi Jinping's visit to the United States is being closely watched by policymakers to gain insight into China's likely future leader ahead of the transition beginning later this year.
"Made in America" is a wildly popular notion across the political spectrum. The President has uttered the phrase dozens of times over the past year. So, it shouldn't be shocking for him to say it on January 24. But, what's behind the rhetoric?
Without question, the rise of China has been a major factor in our nation's loss of manufacturing jobs. However, there is growing evidence that China's challenge to U.S. manufacturing has peaked, and its competitive advantage is in decline.
Mitt Romney has made tough statements about dealing with China which, if sincere, would not only put him beyond the other major Republican candidates on trade, but also far beyond what the Obama administration is doing.
All of a sudden Congress, or at least the Senate, is on the brink of enacting some sort of legislation intended to retaliate against China for its currency manipulation. For me, to borrow a line from Yogi Berra, it is "déjà vu all over again."
A recent "economic letter" contends that America is spending only 1.9 percent of its dollars on Chinese goods. How can we reconcile what we see on Wal-Mart's shelves with what these experts and media pundits tell us?
U.S. export growth to China looks impressive in isolation. But this is a biased and one-sided view -- exports have been overwhelmed by the growth of U.S. imports from China and the bilateral trade deficit, as shown in the graph below.
China is eating our lunch. Why? It has a national economic strategy designed to create more and better jobs. We have global corporations designed to make money for shareholders, regardless of where they reside.
China will almost certainly continue to make its economic presence felt over the next decade; even though this concerns many players in the global markets, it's not in anyone's best interest to condemn Beijing.