akes less than $9 from each iPhone. The total price of a phone is ridiculously counted as a Chinese export to the US.
It’s a good thing that China is no longer a low-wage country. Most Chinese are much better off than they were even 10 ye
ars ago. But it does mean that these low-skilled, labor-intensive industries will be moving to less-developed nations. US t
ariffs on such products will only serve to hasten the transition to higher value-added industries that China has to make anyway.
Roughly 20 years ago, when China’s admission to the World Trade Organiz
ation was being negotiated, China’s economy was tiny as a portion of world GDP. It was clearly a poor, less-deve
loped country that, except in a few areas, was not able to compete with Western companies in high-value-added products.
As Alexander Hamilton, the first US Treasury secretary, argued, a dev
eloping country may need to protect its “infant industries” from already established foreign
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