Surplus in China, Profits in America: The Uneven Rewards of U.S.–China Trade
U.S.–China trade since China’s WTO entry has produced vast but uneven rewards: American corporations captured high profits by offshoring production to China’s low‑cost labor base while selling into its expanding consumer market, boosting margins and shareholder returns, and giving U.S. consumers cheaper goods. China, meanwhile, gained surpluses, foreign investment, jobs, and rapid GDP growth, transforming into the world’s manufacturing hub. Yet much of the value added and profit flowed back to U.S.… Read more