Most people probably don’t fully understand the financial consequences Donald Trump is talking about when he criticizes the Chinese for devaluing their own currency, but China as a talking point has stuck.
American jobs being shipped overseas is practically synonymous with shipping jobs over to China. And when we see a “made in China” label on many of our products, it’s not hard to see why people have that perception.
It’s likely anger over outsourcing that is inciting a favorable response from the American public over anything else.Over 80 percent of Americans would prefer to purchase American-made goods over Chinese – and it’s frankly surprising that figure isn’t higher.
But what’s really surprising is that Trump’s trade policy on China wouldn’t just help Americans if it were to succeed in bringing jobs back domestically. Even the Chinese may be happy. As Forbes reported:
Over 60 percent of Chinese consumers also say that they are willing to pay more for products labeled “Made in USA” than for those labeled “Made in China,” In surveying Chinese consumers, BCG found a willingness to pay more for U.S.-made goods. The results showed the following:
- More than 60 percent of Chinese consumers are willing to pay more for Made in USA goods.
- Nearly 50 percent of Chinese consumers prefer a product made in the U.S. to a China-made product of equivalent price and quality.
- The premium that Chinese consumers are willing to pay ranges from about 10 percent to almost 80 percent in the categories tested.
- More than half had chosen U.S.-made products over less expensive Chinese goods at least once in the month before the survey.
[Note: This post was authored by The Analytical Economist]