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Chicago Fed Letter, No. 196, November 2003
Midwest Manufacturing and Trade with China
lU.S. trade with China has grown dramatically in recent years. The growth in imports, in particular, has raised some challenges for domestic manufacturers competing against lower-cost Chinese production. At the same time, households benefit from falling prices for imported goods, firms benefit from falling prices on intermediate components and parts, and U.S.-domiciled multinationals benefit from selling to and investing in the burgeoning Chinese market.
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