A Chinese perspective on made-in-China

An article on Sara Bongiorni with Chinese perspectives: A US family's adventure in one-year made-in-China ban.

It has an interesting example on high-end products: Apple's iPod.

Apple outsources the entire manufacturing of the iPod to a number of Asian enterprises.

Three researchers at the University of California recently made a thorough analysis of the cost and profit of all the parts that went into the iPod, and found that out of $299 the retail price of iPod, $163 was captured by American companies and workers, according to a report by New York Times late in June.

While China makes most of the Toshiba hard drives, which are the most expensive component in iPod, and it only does the final assembly.

Chinese workers contribute only $4, about one percent of the cost of the iPod. However, the Chinese export of an iPod to United States directly contributes about $150 to U.S. trade deficit with the Chinese.

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Economist Joel L. Naroff reminds readers that the "Made in Japan" label caused similar anxieties and introspection in the 1950s, adding, "almost everyone's standard of living is improved by being able to purchase less expensive products no matter where they are made."

Now it's China's turn. And for families whose income has been stagnant for the past 20 years, reaching for the "Made in China" label is simply a reality for getting by.