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[They sell us poison and crap.]

Most of it isn’t that. Apple alone* probably accounted for $50b of China’s trade surplus. The relationship between the US and China is similar to the relationship between Google and the janitorial services company it hires to clean its offices. Apple hires Taiwan’s Foxconn to assemble its iPhones, iPads and Apple TV’s so it doesn’t have to put manufacturing employees on its payroll. Apple employees have deluxe pay packages and benefits. Foxconn employees, like those for Google’s janitorial services provider, don’t**. When tariffs on iPhones are implemented, Foxconn will probably move its assembly operations out of China. Only sheer inertia prevented Foxconn from moving to Vietnam, where wage rates are 1/4 China’s. Whereas Chinese salaries exceeded Mexico’s 3 years ago. https://www.mdna.org/rising-salaries-prompt-china-to-send-factory-jobs-to-mexico/

* That’s factoring in iPhones, iPads, Apple TV’s, Apple watches. A 2016 (i.e. prior year) iPhone model accounted for $16b of China’s trade surplus in 2017. https://qz.com/1234437/the-iphone-alone-accounts-for-16-billion-of-the-us-trade-deficit-with-china/

** Lest you think Foxconn is a real slave driver, it actually pays pretty well compared to other employers in China. https://www.forbes.com/sites/timworstall/2012/11/30/apple-and-foxconn-are-the-best-thing-thats-ever-happened-to-chinese-labour/#3ce9f36e3cf9 And that’s in a country where wages have gone up 5-6x in real terms since 2000.

Well, finally a decent balanced post about China. Thank you sir.

Yes, you are correct. You cannot use American industry standards to judge Chinese factories. It is like comparing an apple to a chicken. They are both food items, but other than that, the comparisons break down.

While most Chinese companies will pay a decent Chinese-standard of living wage, they also provide free housing. Free food. Free internet. Free television. Free bus service to and from the local town. Monthly trips paid by the company. Free healthcare. And long lunch breaks so that workers can take a nap.

They do work a 6 day week, however. But this is offset by a month long vacation, and a month long shutdown during the CNY.

So when someone tries to argue that the Chinese are underpaid, etc. I come back that pay is relative. Tell me how the software giants in California deal with the lack of affordable housing, food, and free medical care? They don’t.