toadhall2

The Simple Math of 'Staggering' Chinese Growth

Bad math Vitaliy. Chinese exports may be 35% of their economy but the chinese contribution or "value added" is not 35%. China is the final assembly point for many products but the Chinese contribution is minimal in dollar terms. For example if china exports an Ipod at say $100 it may have contributed less than $10 of labor and components yet the full $100 is counted in your math. To get an idea of the distortion this causes look at Hong Kong where exports are 180% of GDP.