China is a world trade power, manufacturing has greatly improved the overall strength of the country, the export market is constantly internationalized and diversified, and products made in China are marketed all over the world. Exports are positively correlated with international competitiveness, with China's top ten exports accounting for about two-thirds of the world's total exports. On the American version of Zhihu Quora, Indian netizens asked: Why is almost all goods made in China? This has aroused the onlookers and heated discussions of netizens from all over the world, let's take a look at their views.
Question: "Why is it that almost all goods are made in China?"
Answer from American expert David Levy
Those of us born in North America, if we are old enough, can remember the great changes in the economic pattern brought about by World War II and the Korean War in the 1950s and 1960s. War ravaged countries took the opportunity to rebuild themselves. They first experienced the stage of "product export economy".
Those of us born in North America, if we are old enough, can remember the great changes in the economic landscape brought about by World War II and the Korean War in the fifties and sixties. War-torn countries took the opportunity to rebuild themselves, first going through the "export economy of products" stage.
As early as the 1950s and early 1960s, Japan was a world-famous country that made cheap "garbage". Cheap toys, cheap plastic goods and daily necessities flooded the global market. After accumulating a certain amount of capital, the high labor cost made them withdraw from the field of cheap commodity manufacturing. They began to produce goods with better quality and higher added value. They transferred the cheap commodity manufacturing industry to other low labor cost regions, such as South Korea, Taiwan and Hong Kong.
As early as the 1950s and early 1960s, Japan was a world-famous country for making cheap "junk goods", and cheap toys, cheap plastic goods and daily necessities flooded the global market. After accumulating a certain amount of capital, high labor costs led them to withdraw from the field of cheap commodity manufacturing, they began to produce better quality and higher value-added goods, and they moved the manufacturing of cheap goods to other low-labor cost areas, such as South Korea, Taiwan and Hong Kong.
These countries and regions followed the same trend as Japan. By the 1970s and 1980s, they developed from manufacturing cheap goods to manufacturing higher quality value-added goods. By around 1990, labor costs in these areas had become too high, factories began to move to mainland China, and this trend continued.
These countries and regions followed the same trend as Japan, and by the 1970s and 1980s, they developed from making cheap goods to manufacturing higher quality value-added goods. By around 1990, labor costs in these areas had become too high, factories began to move to Chinese mainland, and the trend continued.
The following are China's top ten export products at this stage: Machinery (including computers): 226.7 billion US dollars (down - 0.4% since 2018); electromechanical equipment: 174.2 billion US dollars (up 21.9%); furniture, bedding, lighting, signs, prefabricated buildings: 96 billion US dollars (up 3.8%) knitted or crocheted clothing, Accessories: $67.8 billion (down - 3.4%), clothing and accessories (non knitted or crocheted): $62.3 billion (down - 7.4%), toys, games: $60.3 billion (up 10.3%), steel goods: $59.7 billion (up 8.9%), footwear: $42.2 billion (down - 0.7%), miscellaneous textiles, used clothes: $27.4 billion (up 0.3%), leather / animal intestinal products: $25.6 billion (down - 3%)
The following are the top ten export products of China at this stage: machinery (including computers): 2, $26.7 billion (down -0.4% since 2018) Electromechanical equipment: $174.2 billion (up 21.9%) Furniture, bedding, lighting, signs, prefabricated buildings: $96 billion (up 3.8%) Knitted or crocheted clothing, Accessories: $67.8 billion (down -3.4%), Clothing and accessories (non-knitted or crocheted): $62.3 billion (down -7.4%) Toys, Games: $60.3 billion (+10.3%) Steel items: $59.7 billion (up 8.9%) Footwear: $42.2 billion (down -0.7%)Miscellaneous textiles, used clothes : $27.4 billion (+0.3%) Leather/Animal Intestinal Products: $25.6 billion (down -3%).
China has developed from manufacturing cheap goods to products with higher technological added value. Now, with the increase of labor costs in China, more factories producing cheap goods are moving from China to other countries with lower labor costs, such as India, Southeast Asia and other countries.
It can be seen that China, starting from the manufacture of cheap goods, has developed into products with higher technological added value. Now, as China's labor costs have increased, more factories that produce cheap goods are moving from China to other countries with lower labor costs, such as India, Southeast Asia and other countries.
But since the manufacturing industry in other countries is rising, why are most of the things we usually use made in China? This depends on the engineering triangle. China can produce high-quality, fast and cheap products, which gives China unparalleled advantages.
But since manufacturing in other countries is on the rise, why do most of the things we usually use are made in China? Depending on the engineering triangle, China can produce high-quality, fast and cheap products, which gives China an unparalleled competitive advantage in the market.
• China has invested a lot of money in infrastructure. The factory has reliable power, accessible highway and railway systems, and large modern ports, which constitute the most advanced logistics system in the world.
• China has invested heavily in infrastructure, with factories with reliable electricity, extensive road and rail systems, and large, modern ports, making up the world's most advanced logistics system.
• a mature supply chain can provide almost all required components and materials, with competitive delivery cycle and price, which is a great advantage for complex products (such as electronic components).
• Mature supply chains that are able to supply almost all the components and materials needed with competitive lead times and prices are a huge advantage for complex products such as electronic components.
• a well-educated and well-educated young workforce. Enough smart, well-educated and motivated people will do whatever they are determined to do.
• Education in educated, young and reliable workforce, sound basic disciplines. Enough smart, well-educated, motivated people will accomplish anything they are determined to do.
• stable and consistent government policies and prudent financial and monetary policies. The government will formulate economic plans during its term of office to let enterprises know what the government will do every year. In addition, the country has stable society and positive atmosphere, which provides a good external environment for the development of enterprises.
• Stable and consistent government policies and prudent financial and monetary policies, the government will develop economic plans for the duration of the office, so that companies know what the government will do every year. Again, the country's social stability and clean air provide a good external environment for the development of enterprises.
• good neighbors. China's inherent geographical location has made it a priority for cooperation among developed economies. Many factories in mainland China are joint ventures with Japanese, Taiwanese, Singaporeans and Koreans.
• Good neighbors. China's innate geography has made China a priority for cooperation among advanced economies, and many of the factories Chinese mainland are joint ventures with Japanese, Taiwanese, Singaporeans and Koreans.
China's population adapts to the growth of economies of scale. When the output scale of the enterprise reaches a certain level, the organic combination of various production factors produces the effect that one plus one is greater than two, and the average cost shows a downward trend. Flow operation and automatic production are the embodiment of economies of scale. If you are making shirts, you want to be close to the button factory, zipper factory, etc.
China's population adapts to the growth of economies of scale. When the output scale of the enterprise reaches a certain level, due to the organic combination of various production factors, the effect of one plus one is greater than two, and the average cost shows a downward trend. Assembly line operations, automated production, etc. are all manifestations of economies of scale. If you're making shirts, you want to be close to a button factory, a zipper factory, and so on.
Perhaps many people will swear that the reasons for the success of made in China are the following factors:
Many people may swear that the reason for the success of Made in China is the following factors:
• cheap labour;
• Cheap labour;
• extension of workers' working hours;
• Extension of working hours of workers;
• loose environment, imperfect labor or safety regulations.
• Relaxed environment, inadequate labor or safety regulations.
They rudely concluded that, in general, China is a sweatshop country that reduces labor costs by enslaving workers.
They crudely conclude that, in general, China is a sweatshop state that reduces labor costs by enslaving workers.
Don't believe these fallacies: my evidence is that many countries with low labor costs and poor worker protection have never become manufacturing powers. If the labor cost in these places is so low, why don't they get the advantage of low production cost?
Don't believe these fallacies: My proof is that many countries with lower labor costs and poor worker protection have never become manufacturing powerhouses. If labor costs in these places are so low, why don't they get the advantage of low production costs?
The reason: it's not just about labor costs. This is about the total cost and benefit of choosing China as a manufacturing base.
The reason is that manufacturing is not just about labor costs, but about the low total cost and high yield of choosing China as a manufacturing base.
If the employer requires time and cost:
If the demand side demands time and cost:
A large number of Chinese products are designed to be available quickly and cheaply. As a result, "quality" is compromised, and it is precisely because of speed and cheapness that these products usually fail faster than other similar products.
A large number of Chinese products are designed to be delivered quickly and cheaply. As a result, "quality" is compromised precisely because they are fast and cheap, and these products usually fail faster than other similar products.
If the employer puts forward quality requirements:
If the demander makes a quality request:
China also has the ability to produce high-quality products. Most of Lenovo, apple and other electronic products come from China. They are usually of high quality and can be purchased immediately.
China also has the ability to produce high-quality products, and most of the electronic products such as Lenovo and Apple come from China. They are usually of high quality and can be purchased immediately.
In fact, in some production areas, China is ahead of the whole earth. For example, large-scale simulation and structural testing (such as huge shaking table) - if you want to perform some of these tests, other countries don't have the ability, you have to go to China to do it.
In fact, in some areas of production, China is ahead of the entire planet. For example, large-scale simulations and structural testing (e.g., huge shakers) – if you want to perform some of these tests, other countries don't have the capacity, you have to go to China to do it.
Therefore, as China enters other fields such as semiconductor manufacturing and commercial aircraft production, I can only say that Boeing, Airbus, Intel and AMD had better speed up their pace, otherwise they will be marginalized in the next step.
So as China moves into other areas like semiconductor manufacturing and commercial aircraft production, I can only say that Boeing, Airbus, Intel, and AMD had better speed up their pace or they'll be marginalized next.
British netizen William Logan's answer
Because China is a country that has successfully walked out of the trap of neocolonialism, while the West has been creating neocolonial scams to the third world after World War II.
Because China is a country that has successfully emerged from the trap of neo-colonialism, and the West has been creating neo-colonial hoaxes to the Third World after World War II.
The trap is simple. Capitalists need cheap labor, so they turn their eyes to third world countries, bribe governments and build sweatshops. They transferred low-tech jobs to local workers and left high-tech jobs in their country. Bankers lent large amounts of dollars to the country to let them sell their sovereignty and resources.
The trap is simple. Capitalists need cheap labor, so they set their sights on third world countries, bribing governments and building sweatshops. They transferred low-skilled jobs to local workers, left high-tech jobs in their own countries, and bankers gave the country large loans in dollars, giving them a sell out of their sovereignty and resources.
When third world countries began to experience initial economic growth, local people could afford products, while investors from rich countries received a larger share of the cake. When local people are rich enough to buy factories and start learning to make high-tech products, bankers in rich countries will adjust interest rates or take other measures to make local funds begin to flow back to the United States.
When third world countries began to experience early economic growth, locals could afford the product, while investors from rich countries got a larger share of the pie. When locals are rich enough to buy factories and start learning to make high-tech products, bankers in rich countries adjust interest rates or take some other approach to get local money back into the United States.
When the local currency depreciates and local companies cannot pay their loans, their economy begins to collapse, and the local people's wealth will shrink sharply in an instant. The local capitalists will buy the factory again at a very cheap price.
The local currency depreciated, local companies could not pay loans, their economy began to collapse, and the wealth of local people would shrink sharply in an instant. The wealthy capitalists would then buy the local factories at a very cheap price and start the cycle again.
China has successfully got rid of this vicious circle because the Chinese learn so fast that Westerners slander it as theft. Obviously, the West does not have enough power to force China to give up technological upgrading.
China has managed to escape this vicious circle because Chinese learn so quickly that Westerners slander it as theft. Clearly, the West does not have enough power to force China to abandon technological upgrading.
China's industrial chain is the most sound in the world. China is strong and tough enough to resist the financial scams of Wall Street. More importantly, capitalist countries have found that they can no longer deal with China together as they did with Southeast Asia in 1997, because many large multinational companies say they are too dependent on China to afford the cost of dealing with China.
China's industrial chain is the most robust in the world, and China is strong and tough enough to fend off Wall Street's financial scams. More importantly, capitalist countries are finding that they can no longer join forces against China, as they did with Southeast Asia in 1997, because many of the large multinationals say they are too dependent on China to afford to deal with China again.
For them, the cost of destroying China's economy is too high. But the problem is: if we don't let China's economy collapse and fool the people, the west can't explain the relative superiority of its social system. So now we see something interesting happening: some capitalists are very angry with China, they are eager to destroy China's economy, while others are still hesitant.
For them, the cost of undermining China's economy is too great. But here's the thing: The West can't explain the relative superiority of its social system without allowing China's economy to collapse and then fool its people. So what we're seeing now is interesting: some capitalists are very angry with China, they are eager to destroy the Chinese economy, while others are still hesitating.
For example, when Apple finds that their sales in China are not as good as before, apple shareholders and executives will be sad or even angry. Tesla now wants to produce cars in China, ignoring Trump's warning, Qualcomm's decision to cooperate with China and so on show this.
For example, when Apple finds that their sales in China are not as good as before, Apple shareholders and executives will be upset or even angry, Tesla is now going to produce cars in China, ignoring Trump's warnings, Qualcomm's decision to cooperate with China, and so on.
Now, many capitalists do not want to play the old-fashioned zero sum game. They note that China can provide them with a better way to make profits, which is an alternative to neocolonialism.
Now, many capitalists are less inclined to play the old-fashioned zero-sum game, noting that China can offer them a better way to make money, which is an alternative to neocolonialism.
The United States and the entire NATO group are at a crossroads. Either the old military energy industry complex persuades high-tech enterprises to play the zero sum game, or China persuades high-tech companies to play the new oboe game. Obviously, the latter is more attractive to emerging technology enterprises.
The United States and the entire NATO bloc are at a crossroads. Either the old military-powered industrial complex convinces high-tech companies to play zero-sum games, or China convinces high-tech companies to play the new oboe game, which is clearly more attractive to emerging tech companies.