The China exports to US alone amounts to U.S.$350 Billion
China is the manufacturing powerhouse of the world. A major chunk of every manufactured item that is being used today has the tag 'Made in China on it. China has been able to manufacture almost every item at a fraction of the cost as compared to America. The Economics of scale, favorable Government policies and low cost of labor has made China the best Wholesale supplier. Chinas export of Manufactured Goods to the US is estimated to be in the region of U.S.$1250 Billion in the year 2007. The Chinese exports to US alone amounts to U.S.$350 Billion on FOB - Free On Board basis. This is the price the importers in US pay to the china manufacturing industry. But when these goods ultimately reach the consumers in America the actual value is much in excess of U.S.$350 Billion - something around U.S.$1000 Billion. Obviously these goods imported from China are retailed at much higher price to American consumers. Most of the manufactured goods that we have been purchasing from retail outlets and Internet web sites have been sourced from China and retailed to us at a substantial Mark up. The Chinese manufacturing industry has fuelled a retail boom in America and Europe. The businessmen in America and Europe gained much more because of China Manufacturing and Exports than the businesses in China. It is a fact that trade and business with China has fuelled a retail boom in the US. Retailers and other intermediaries within the US make far more than what the actual manufacturers in China make. It has created more wealth within America than in China. Those who may harbor any resentment against Factories and outsourcing manufacturing jobs to China must pay attention to this point. For example the total American Furniture Business in the year 2007 was U.S$70 Billion on the whole sale price basis. Chinese Furniture manufacturers supply around 50% of this value. The total retailed value of the entire Furniture business however was estimated to be around U.S.$200 Billion. The leading Carolina based Furniture companies like Broyhill Furniture, Ashley Furniture, Basset, Rhodes etc. are in the process of shutting down their manufacturing operations in America and shifting to contract manufacturing in China. They are now increasingly importing furniture from China made as per their designs and quality. American Furniture companies are focusing more on Furniture design, quality control, and setting up of Furniture stores and servicing.
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