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2006-10-31 08:10:49 · 11 answers · asked by mapassqadri 2 in Social Science Economics

11 answers

In addition to the above answers, it's also because of:

Corporate greeds--cheap labor (sweatshops)--and sell at higher prices in the US. (Go to Macy's and see how they price their products that are made from China!)

Not just China, but most 3rd world countries labor forces are used to make products contracted/created by big American/European companies, like Wal-Mart.

Standard disclaimers

The above is solely my own opinions to the best of my knowledge.

2006-10-31 08:28:12 · answer #1 · answered by idealist 1 · 0 2

Actually, first we need to change your question a bit... VERY few products are developed in China. Most development of products is in countries like Japan, the U.S., Germany, the U.K. etc.

Why are so many products produced in China? I think is what you're going for. (if not, well... sorry)

The reason a lot of products are "made in china" is because of a variety of things, but the biggest is quite simply labor costs and access to materials. Many of the products that are produced in china are those that require a heavy amount of plastics and rubbers, both of which are very inexpensive in asia compared to some other parts of the world in the "raw material" sense. Labor costs are ridiculously low in China, due to the lack of serious regulation on the treatment and pay of workers in the country. The vast majority of people in China live in a status of what most people in the U.S. would consider poverty, though our definition is only partly correct.

In any case, those really are the two main contributing factors to why so many products are produced in China.

2006-10-31 08:15:40 · answer #2 · answered by rainsinger 3 · 1 1

I don't believe so many products have been developed in China, (meaning invented or highly modified, but many many products that come to the USA today are produced in China largely due to lower workers wages and fewer environmental and government restrictions on production which allow an almost uncompetitive advantage on the world market for manufactured goods. Hmmmm

2006-10-31 08:15:17 · answer #3 · answered by dumb 6 · 0 1

The idea of "cheap Chinese labor" is probably not what you might think when considering why so much production is done in China. A wage of $20,000 will leave a person struggling in the US, but it is a comfortable wage in China.

The Chinese yuan (money) is kept at a low exchange rate by the Chinese government. One US dollar is roughly the same as about 8 RMB (Chinese dollars or yuan). When I've visited China, I could figure (as a *ROUGH* generalization) that a reasonable price for something in yuan would be the same as if I thought of it as US dollars. That is, if something (non-branded commodity) would be worth $5 to me in the US, then if I find it for less than 5 yuan in China, it's probably a bargain; if priced over 5 yuan, I'll pass and shop for a better price.

Do the math to see just how comfortable a $20,000 wage could be in China -- what wage would be required in the US to equal its buying power? This will be the case long as the Chinese government maintains the exchange rate at an artificially low level.

Also consider that China doesn't have the same environmental or labor laws as we have in the US. Visit a major city in China and you won't be able to see very far for all of the polution in the air. You will also see that Chinese drink bottled water to a much greater extent than we would see in the US -- because their water is so unsafe to drink. It is much more expensive to make things in the US because it is expensive to care about the health of workers and the health of our planet, and because our government mandates that manufacturers spend the money that it takes to care. The Chinese government doesn't have the same level of mandates about the health of its workers, the health of its citizens, or the health of the environment, and this greatly decreases the cost of manufacturing stuff in China.

As for the design of products -- Chinese don't want to buy Chinese brands, they want to buy American brands, and they are willing to pay a high premium for American brands. The reason is that so much Chinese branded stuff is downright worthless junk. While American branded products might be manufactured in China, they are produced to specifications that maintain the quality image of the American brand.

2006-10-31 09:43:51 · answer #4 · answered by Bob O. 1 · 0 1

There is a difference between developed and manufactored. Most products are manufactored in China because of cheap labor.

2006-10-31 08:19:48 · answer #5 · answered by tw0cl0n3m3 6 · 0 1

Most products are manufactured in China because of the cheap labor.

I do not believe they develop anything.

2006-10-31 08:12:46 · answer #6 · answered by MЯ BAIT™ 6 · 0 1

because the cost to make products over there is a lot cheaper than making them here. and selling those same cheaply made products will shoot revenue through the roof

2006-10-31 09:43:51 · answer #7 · answered by L-meister 2 · 0 0

Cheap labor saves the big wigs plenty of $$$$$$$$

2006-10-31 08:18:12 · answer #8 · answered by . 6 · 0 1

Because the Chinese are very smart people. Don't ever underestimate them.

2006-10-31 08:41:03 · answer #9 · answered by The Gadfly 5 · 0 2

don't forget about Hongkong

2006-10-31 08:18:35 · answer #10 · answered by stephanie 3 · 0 1

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