Apparel Exports from China to the United States: A Marxist Perspective

Abstract

Chinese and U.S. perspectives on trade are very different and thus can lead to misunderstandings. Although researchers in both countries have analyzed problems in trade relationships, they have done so solely from their own cultural perspectives. Researchers in each country have made little effort to understand the other’s way of thinking about trade between them. In this paper we summarize the history of Chinese apparel trade with the U.S.; outline ways retailers, manufacturers, consumers, and the U.S. government react to Chinese apparel exports; introduce Marx’s theory of political economy which provides the basis for Chinese ideology; and use this theory to analyze trade relationships between China and the U.S. Based on the central tenet of Marxism, that labor is the only source of profit, we argue that the Chinese believe that the U.S. obtains more profit than China, while China loses profit through apparel trade between the two countries. The U.S. profits by indirectly exploiting the Chinese labor force and taking advantage of sophisticated U.S. technology. Suggestions are made to policymakers who negotiate trade agreements so that they might better understand Chinese views.

Core Factors Governing Manufacturing Procedures and Systems

“…In addition, many advanced and developing countries have made complicated international trade relationships according to industrial features such as the level of the economy, the flexibility of the labor market, and labor laws. For example, Shen and Dickson (2002) Dixon and Tang (2002), many major companies troubled with increased production costs look for a place where they can produce products with low labor costs. Since it is not easy to directly handle the manufacturing systems, they make a subcontract with local manufacturing companies in the developing countries.…”