Here is what I know how china's factories are able to produce items so cheaply.
When a group of organized Chinese investors want to borrow money to start a factory the investors apply for a loan from the Chinese government. In return, the Chinese government will loan the investors the funds needed to build the export factories. In return, the Chinese government will have a 1/2 ownership in the company. While the factory is under construction, there will also be a workers dormitory that will be constructed to house all the workers and is built right next to the factory. This construction model will eliminate the need for the transportation of works between living quarters and there place of employment. Each room in the "living quarters" dorm houses four people to each room and some times more per room. In some of these rooms, there are bumkbeds for the workers to sleep in. This makes living expenses low, compared to western society where we have mortgages, cars to get to work, and so on. This makes working at the factory job affordable is most of your needs are met such as food shelter and so on with the little wages thay earn.
If the Chinese worker issues a complaint to the government based on working conditions, the complaint is largely ignored because, the company is half owned by the government.
There is little to no environmental pollution controls which would increase the overhead of the product and possibly slow down production. If you want to see proof of this, just power up google earth, and focus on the Yangzee river spilling pollute water into the ocean.
Now you may think, what does Vancouver BC where I live, have to do with china. Well, we have a large Chinese population here. And a percentage own a stake or outright , own factories in china. About 10-15 years ago, before china took over Hong Kong, a large amount of these owners moved to Vancouver British Columbia due to the fear of the Chinese government crackdown by government forces as a result of its poor human rights record. It was easy for these owners to immigrate to Canada because China was a part of the British Commonwealth or, was part of it so I do not know its status. With these Chinese immigrants, came large bank accounts from the vast profits they earned from there factories. They continued to over bid on homes here, increasing the un-affordability of homes here.
I believe, all of the US import/export troubles started way back in the President Nixon erra when he eliminated import terrifs. I can remember way back in the 1970s, when most imported products were made in Japan, then Korea. The exports of us products continued to slide after President Regan was in office and instituted his "Ragenomics" policies on the US economy. It was 1990s? that NAFTA was proposed and Ross Perot Vehemently opposed this proposal because as he said "It would create that great sucking sound" as us product production would shift to overseas production and thousands and millions of jobs in the United States would be lost. HE WAS RIGHT.
I will unfortunately, will have to buy Chinese made goods but, I will also buy American as long as it has the quality I am looking for. If I have to pay more for it, fine. It is usually a better made product that will last a good long time. BTW, want to support the us economy? Make something for some one for Christmas. At least the materials are made locally, and the US Currency stays in circulation
