Why China Is "The World's Factory"

Question: What do Lightening McQueen, a Nike sneaker and an iPad have in common? Answer: China. Chinese products seem to be everywhere: the majority of tags, labels and stickers display the legend “Made in China.” The Western consumer may ask, “why is everything made in China?” Some may think the ubiquity of Chinese products is due to the abundance of cheap Chinese labor that brings down the production costs, but there is much more to it. Here are five reasons China is "the world's factory.”

Lower Wages

China is home to approximately 1.35 billion people, which makes it the most populous country in the world. The law of supply and demand tells us that since the supply of workers is greater than the demand for low-wage workers, wages stay low. Moreover, the majority of Chinese were rural and lower-middle-class or poor and until the late 20th century when internal migration turned the country's rural-urban distribution upside-down. Immigrants to industrial cities are willing to work many shifts for low wages.

China doesn’t follow (not strictly at least) laws related to child labor or minimum wages, which are more widely observed in the West. However, this situation may change. According to the China Labour Bulletin, from 2009 to 2014 minimum wages have almost doubled in mainland China. Shanghai’s minimum hourly rate is now up to 17 yuan ($2.78) per hour or 1,820 yuan ($297.15) a month. In Shenzhen the rate is 1,808 yuan per month ($295.19) and 16.50 yuan ($2.69) per hour based on an exchange rate of 1 yuan = $0.16. The huge labor pool in China helps to produce in bulk, accommodate any seasonal industry requirement, and even cater to sudden rises in the demand schedule.

now I see why my stuff is always back ordered from China

"Here are five reasons China is "the world's factory.”

Oi man where are the other four?

Cain after watching this I have a new respect for some of these made in China products

A form of slavery. American businesses and American products have a confined labour force. Living on sight like the days of chopping cane, planting cotton or harvesting indigo.

White people moving their money around.

Products cheaply made and sold at exorbitant prices in the west.

Henry Ford approach to production lines. 

Amral posted:

Cain after watching this I have a new respect for some of these made in China products

I might respect the people for working their asses off, but I doan respect most of the cheap goods. I just had a talk with a neighbour who wanted me to try and refill a lighter, she's been trying and it does nothing. They make refillable lighters with a spot for the butane...fake ...cyan refill.

Back in the old days in Guyana, we use to love American made products, ice apple and grapes. Today, everything is Chinese made, and the artificial apple and grapes look real on your kitchen table. This is why the Chinese are speaking against Trump from bringing back American businesses in his campaign message. There are chains of 99 cents stores in NYC. They make a fortune from selling everything under the sun.

Cobra posted:

Back in the old days in Guyana, we use to love American made products, ice apple and grapes. Today, everything is Chinese made, and the artificial apple and grapes look real on your kitchen table. This is why the Chinese are speaking against Trump from bringing back American businesses in his campaign message. There are chains of 99 cents stores in NYC. They make a fortune from selling everything under the sun.

After all being said, what is attracting these young people to this job and lifestyle ? Similar to telemarketing and low paying store jobs in Guyana. It must be better than what they had previously, nothing.

Plus, it is not something they just walk into, they have to pass tests to be accepted.