Tim Harford

Is the iPhone made in China? The question is harder to answer than you might imagine. At first sight, the statistics seem open and shut. The Chinese make the iPhones, the Americans buy the iPhones, and the result is an increase in the US’s trade deficit with China: $1.9bn in 2009, according to Yuqing Xing of the National Graduate Institute for Policy Studies in Tokyo, and Neal Detert of the Asian Development Bank. … all these components are imported into China. Some come from the US, some from Germany, and many from Japan, specifically from Toshiba. The Chinese themselves add very little value to the package. To see why this … Continue reading Tim Harford