Thursday, March 23, 2017
Focus on China 2017
Competition from Chinese imports may have cost some Americans jobs. Economists have found that, of the fall in manufacturing jobs between 1990 and 2007, one-quarter could be attributed to a surge in imports from China.
What a company such as Apple would have done without low-cost Chinese assembly workers is unknowable. Nevertheless, American shoppers were able to buy cheaper stuff.
Americans were able to buy products to lower prices and this raised consumer's incomes by the equivalent of 13-percentage-point cut in tariffs.
It also helped poor Chinese workers get richer, which should be regarded as a positive development from a global perspective.
Source: The Economist, March 2017