Do you look for US-made or something not made in China? It’s harder than you think because the labels don’t tell you what you need to know.

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Are iPhones made in China or the US? Tesla? And where are things stamped “Made in Mexico” really from? With parts made where?

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Trade data from the BEA, chart by Mish

US trade with non-Chinese countries is soaring. Our trade deficit with the tri Mexico, Taiwan, and Vietnam passed China.

And our trade deficit with China is shrinking a bit as shown in the next chart.

US Balance of Trade

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Trade data from the BEA, chart by Mish

If you wish to give Trump credit for reducing the trade deficit with China from $375 billion to $308 billion, then also give him credit for increasing the deficit with Mexico, Taiwan, and Vietnam from $124 billion to $211 billion.

Trade is Not Bilateral

The problem with thinking we are making any headway at all reducing our trade deficit with China is that trade is not bilateral.

Items stamped “made in Mexico” or Vietnam or many other places have parts and materials made in China.

To avoid US tariffs, China sends parts and materials to other countries. As long as no more than 49 percent comes from China, it can be stamped “Not Made in China” satisfying those who want something else. This is further subject to the added benefit attributed to assembly of parts made in China but assembled elsewhere.

Rubbish From China?

I’m convinced Atomic Economics is correct.

Rare Earth Minerals

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China is responsible for producing or refining up to 90 percent of rare earth minerals. They go in nearly everything important that you buy.

If you want something totally not made in China and with no materials produced or refined in China, good luck finding it.

Chinese Companies Dominate the Market

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EV image from SNE Research via the Wall Street Journal

Big 3 Intra-Battle Over Batteries

The Wall Street Journal reports a Ford vs. GM Feud Could Shape the Future of EVs in America.

Ford hoped to get ahead by licensing technology from China’s Contemporary Amperex Technology Co. Ltd., known as CATL, to make lithium-iron-phosphate batteries at an industrial scale in the U.S. for the first time. They are much cheaper than other alternatives, reducing the production cost of the car.

Foreign Entity of Concern

In a battle between GM and Ford, $7,500 in tax credits are at stake depending on Biden’s definition of “foreign entity of concern.” The exclusion aims to reduce US reliance on Chinese batteries and materials to make them.

I discussed this on September 30, in An Epic Battle: Ford to Use China’s Battery Technology, GM Wants it Blocked

What does “Made in America” even mean if we are licensing technology from China to make the most critical component of an EV.

Not only will Ford pay royalties to China for the battery technology, a strict definition of “foreign entity of concern” should apply to both GM and Ford over the minerals needed.

It takes 10 years to get a mine up and running. Factor in delays caused by clean energy NIMBY hypocrite who demand clean energy but will fight new mines every step of the way.

Germany Faces the Green Fiscal Truth but Biden Still Clings to EV Fantasy

Meanwhile, please note Germany Faces the Green Fiscal Truth but Biden Still Clings to EV Fantasy

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