A sophisticated supply chain, cheap labour and tons of subsidies. Back in the wild west of Chinas economic boom when the subsidies were a little more nepotistic certain industries got more subsidies per individual unit of output than all the inputs + labour + export costs, they were basicallly producing the goods without risk. This is awesome for the recipients as they could easily expand and produce more. Less awesome for those producing the same goods in Vietnam, Malaysia, Indonesia, India, the Phillipines, etc etc.
Wrong comparison : China workers' salaries are in the high tier among Asian nations. Westerns' salaries, after years of industrialization, is normal among themselves, is generally higher in nominal term, but in actual purchasing power comparative.
Although low wages were a significant advantage for China until a decade or two ago, the country remains a global leader in 2024 for a different reason. China's appeal lies in its enormous and highly skilled workforce, covering both blue-collar and white-collar roles. As Tim Cook pointed out, if he needed skilled professionals in a specific field in the U.S., they might only fill half his office, whereas in China, they could fill two football fields.
I have read that the Chinese Military own factories and soldiers work in the factories. That must allow them to bring Defense Budget down and use the money for other purposes. China provides residents with free health care, so that woud increase individuals disposable income. Foreigner living in China qualify for the free health care.
A sophisticated supply chain, cheap labour and tons of subsidies. Back in the wild west of Chinas economic boom when the subsidies were a little more nepotistic certain industries got more subsidies per individual unit of output than all the inputs + labour + export costs, they were basicallly producing the goods without risk. This is awesome for the recipients as they could easily expand and produce more. Less awesome for those producing the same goods in Vietnam, Malaysia, Indonesia, India, the Phillipines, etc etc.
Wrong comparison : China workers' salaries are in the high tier among Asian nations. Westerns' salaries, after years of industrialization, is normal among themselves, is generally higher in nominal term, but in actual purchasing power comparative.
Although low wages were a significant advantage for China until a decade or two ago, the country remains a global leader in 2024 for a different reason. China's appeal lies in its enormous and highly skilled workforce, covering both blue-collar and white-collar roles. As Tim Cook pointed out, if he needed skilled professionals in a specific field in the U.S., they might only fill half his office, whereas in China, they could fill two football fields.
I believe that there is everything manufactured in such a large scale that it makes everything extremely cheap
I have read that the Chinese Military own factories and soldiers work in the factories. That must allow them to bring Defense Budget down and use the money for other purposes. China provides residents with free health care, so that woud increase individuals disposable income. Foreigner living in China qualify for the free health care.
supply chain and skilled work force