AND ANYBODY CAN ASSEMBLE THE PARTS:

Not Really 'Made in China': The iPhone's Complex Supply Chain Highlights Problems With Trade Statistics (ANDREW BATSON, 12/17/10, WSJ)

[R]researchers say traditional ways of measuring global trade produce the number but fail to reflect the complexities of global commerce where the design, manufacturing and assembly of products often involve several countries.

"A distorted picture" is the result, they say, one that exaggerates trade imbalances between nations.

Trade statistics in both countries consider the iPhone a Chinese export to the U.S., even though it is entirely designed and owned by a U.S. company, and is made largely of parts produced in several Asian and European countries. China's contribution is the last step—assembling and shipping the phones.

So the entire $178.96 estimated wholesale cost of the shipped phone is credited to China, even though the value of the work performed by the Chinese workers at Hon Hai Precision Industry Co. accounts for just 3.6%, or $6.50, of the total, the researchers calculated in a report published this month.

Yeah, but we're missing out on all those sweet, sweet jobs that Americans won't do.

Posted by Orrin Judd at December 17, 2010 7:14 AM