Where to Find Chinese Goods in Our Home

A baby gear store told CNN that expecting parents have a new kind of question. Instead of asking for the best strollers, soon-to-be moms and dads wonder what will be unavailable because of tariffs. The question makes sense. Almost all baby strollers that the U.S. imports–97%–are made in China.

Chinese Goods

Since China makes approximately one third of all the physical products in the world, it was likely that a baby stroller was one of them.

From this NY Times image of some of our kitchen’s devices, you can see China’s vast presence. The percents indicate the share of U.S. imports from China of that item:

Doing us a quantitative favor, the NY Times did an inventory of China’s exports throughout our house. Slightly tweaking their approach, I’ve grouped items according to how much of them China makes.

In the 90 percent range, the list is long. At the top, we have toasters and alarm clocks. Close behind at 96% to 98%, there are umbrellas, baby strollers, and charcoal grills, and artificial plants and thermoses. Then, between 90% and 93%, we can add children’s books, microwaves and first aid kits. Also in the 90s, I could have included bathroom scales, bamboo shelves, and flashlights.

However, at the other end, we have a list, though not as lengthy. Our car was probably not made in China. nor was our mattress or TV. Meanwhile, it is likely that our tables, bookshelves and bookcases made from wood also did not come from China.

Our Bottom Line: Adam Smith and David Ricardo

During 1776, in The Wealth of Nations, Adam Smith first told us, “In every country it always is and must be in the interest of the great body of the people to buy whatever they want of those who sell it cheapest.” As the first person to see order in the seemingly chaotic market system, Smith named basic incentives that fuel transactions. On the supply side producers want high profits while their customers look for low prices. As a result, on the supply and demand sides of the market, whether it’s imports or domestic production, inputs or final products, “cheap” items are desirable.

Almost at the same time, David Ricardo explained why one country should not make all of those “cheap” items. His concern was the alternative use of land, labor, and capital. He worried, for example, that if a country makes dolls, instead it might have used its factor inputs for computers. Called comparative advantage, the key idea is knowing what we sacrifice when we decide to produce a good or a service.

Fast forwarding to today, and remembering Smith and Ricardo, we have to ask a question. We should ask if we have benefited from buying cheaper items that we prefer not to make ourselves. We can also ask if we’ve benefited from not making those items because the sacrificed alternative goods and services would have been too costly.

My sources and more: Through the NY Times and also this CNN article, we can approximate China’s presence in our lives. Then, from there, we see the Adam Smith and David Ricardo connection.