Why don't we see "Made in USA" as much as "Made in China" even though US ranks 2nd to China in manufacturing output by relatively slim margin, $1.87T vs $2.0T?

A lot of the “Made in USA”, “Made in Italy” or “Made in France” is not realistically made in the US or France or Italy.



For example, a very well known Italian fashion brand, P, actually has its products 98% made in China from materials that they ship out to China under strict inventory control. If the order is to make 100 bags in a Chinese factory, P will ship enough materials for 100 bags only to China. The factory will have to ship back 100 bags to P. And if the factory makes a mistake, the bad item will also have to be shipped back. No surplus materials will be left with the factory. The mostly-finished products are then shipped back to Italy, and the final stage of manufacturing is to put a buckle onto each of the bags, together with the label “Made in Italy", in an Italian factory. That makes it Made in Italy.


This is a practice done by nearly all manufacturers, especially with high end items, except a few super brands.


This practice, however, sometimes would create a double entry in the books of the two countries concerned. In my example above, both the books of China and that of Italy will show an entry of having manufactured 100 bags.


But with lower priced items the goods are sometimes not registered and labeled as Made In USA, eventhough they are counted as having been so, because doing so would attract additional paperwork that does not add value to the items. Eg. A bag that is made in Italy would certainly be more prestigious than one made in China. But a plastic plate made in the US or China would be of no difference. That is why you see the industrial manufacturing output of both countries as being quite similar but you don't see as many goods on the streets as being “Made in USA”.