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iPhone 'reflects China's relationship with US'

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Both the US and China have a problem - China consumes too little of what it produces, and when demand for exports fall, its economy can stall.

America has the opposite problem - it produces too little of what it consumes

The BBC's Simon Jack and Jonny Diamond have been looking at this co-dependent economic model from both sides of the Pacific.

Chris Anderson, former editor-in-chief of Wired magazine, told them: "You can see the history of manufacturing in the back of Apple products.

"The back of the iPhone says: 'Designed in California, assembled in China'. And that largely describes the latter half of the 20th century and the beginning of the 21st, which is to say that China had so successfully built a world-beating manufacturing model with initially cheap labour, great engineering, very dense supply chains, everything you needed to make an iPhone and products like it."


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