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A recent report by economists at the Asian Development Bank Institute in Tokyo shows that widening trade gap between the U.S. and China was caused by the headset. It sourced parts from other Asian countries despite being designed in the US. The phone’s assembly in China counts the handset as a Chinese export to the U.S. in both countries’ trade statistics. It is therefore considered a Chinese product, despite the fact that its maker is a U.S.-based country.