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Growing trade deficit is selling the nation out from under us (2003) [pdf]

(faculty.washington.edu)
162 points TaurenHunter | 3 comments | 04 Apr 25 09:20 UTC | HN request time: 0.424s | source
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randyrand ◴[04 Apr 25 09:58 UTC] No.43580117[source]▶
The USA captures most of the value from selling iPhones worldwide, but yet the entire value of an iPhone counts only as a Chinese export.

Something is not right with how we calculate these things.

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mysecretaccount ◴[04 Apr 25 10:04 UTC] No.43580160[source]▶
iPhone sales don't count as a US export when calculating the trade deficit? Does anyone have information on this? Seems like a major issue indeed.
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1. thefounder ◴[04 Apr 25 10:11 UTC] No.43580204[source]▶
Of course they don't because they are made in China. Do you think that Ford cars manufactured in Mexico count as U.S export?
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2. sam_lowry_ ◴[04 Apr 25 10:18 UTC] No.43580242[source]▶
Not only China but let us assume iPhones are made in China only.

China gets a modest share of the profits, because Apple pockets the rest. Reinvesting a fraction in US and stashing most of the profits in banks across the world that use this money as leverage to buy US bonds, among other things.

3. tzs ◴[04 Apr 25 10:51 UTC] No.43580426[source]▶
They are assembled in China. Most of the parts are made elsewhere and shipped to China.

Should the entire price of the phone count as a Chinese export?