Frank
West Long Branch,#2Consumer Comment
Wed, July 06, 2005
I find it humorous that the poster equates inferior products with China. He needs to open his mind before he opens his mouth. Due to the differences in standards of living between the United States and China as measured in per capita GDP, a product made there and sold here will see greater profit than a product made and sold here. As such, China has become the US' largest creditor with with that nation holding $14.7146 billion of the $57 billion deficit in April. Here's the link to the official source: http://www.census.gov/foreign-trade/Press-Release/current_press_release/exh6s.pdf FYI, the US has a per capita GDP of $40,100 while China's only $5600 as indicated by by the CIA World Factbook: http://www.odci.gov/cia/publications/factbook/). However, in comparing per capita gdp, China doesn't even rank as the lowest. The Phillipines, a former US colony, has a per capita GDP of $5000 yet it ranks 36th in US creditors with $144.7 million. To further illustrate this point, look at India. Despite a population comparable in size to China (which some believe may surpass China in the future) and a per capita GDP of $3100, India ranks 17th among US creditors with $740.1 million. As demonstrated, if American manufacturers really wanted to save money, they could have their products built in the Phillipines and India for costs lower than China. However, China has become the US' largest trading partner because the nation has similiar natural resources as the US and comprable work force in both skill and education. In fact, some of the manufacturing techniques used in China were brought over from the US due joint ventures between firms of both countries. I hope this clears any misconceptions about China producing low quality products. If not, read Adam Smith's The Wealth of Nations.