The Tipping-Point Industries

The impact of the changing math of manufacturing will be felt the most in seven industry sectors that our analysis predicted would reach a tipping point in around five years, when the rising costs of producing in China will make it more economical to shift the manufacture of goods consumed in the U.S. to the U.S. Together, these industries account for nearly $2 trillion in annual U.S. consumption. In 2010, the U.S. imported nearly $200 billion worth of products in these categories from China—almost two-thirds of total Chinese exports to the U.S. (See Exhibit 4.) These industries are the following:

  • Computers and Electronics. The U.S. imports from China around 26 percent of the electronics it consumes, led by computers, wireless phones, and televisions. U.S. imports of these products from China in 2010 were worth $122 billion.

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