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Surplus with China, profit with the US (2) |
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16:23, September 06, 2007 |
According to a survey by the American Chamber of Commerce, People' s Republic of China, 73 percent of US-funded enterprises believe they earn money in China; and 37 percent acknowledge a profit rate in China that is higher than their global average. Therefore, 51 percent list China as their top choice for investment in the coming five years.
Fourthly, "made in China" is also "made in the world." To a certain degree, it can be said that China has become an international center for assembling products.
A recent report by three researchers from the University of California said that for each 299 US dollar iPod, the personal audio-visual tool by Apple Inc., the Japanese company Toshiba received 73 US dollars by providing the most expensive parts (Apple keeps no production line). Other countries and regions grabbed a hold of 60 US dollars by providing other parts; and China only got its share of three US dollars for assembly. The remaining 163 US dollars went to the US, including 80 US dollars for Apple.
The fact is China only received one percent of the selling price. However, along with each iPod exported from China to the US; the US trade deficit to China increased by 150 US dollars. According to Professor Lampton from Johns Hopkins University, if Washington imposes barriers on products exported under China' s name, it would be punishing not only China; but also US allies and the US itself.
The US is the world' s largest developed country and market; while China is the largest developing country and potential market. Expanding and deepening China-US economic and trade cooperation is not only in line with the fundamental interests of the two peoples; but will also contribute significantly to world trade.
By Li Changjiu, research fellow with Center of World Affairs Studies of Xinhua News Agency; translated by People''s Daily Online.
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