how china could manufacture products with such low cost?

Answer 1

It's because they pay their workers almost nothing.
And because there are no taxes to be paid for social security... so if you loose your job or fall ill, you don't have an income.

Answer 2

6 Reasons immediately come to mind:

1. China is poor and has the largest population of any country. Large supply of labor drives the cost of labor down. The more labor-intensive the product, the less it costs to make in China.

2. Despite the recent rise in the value of the RMB (Chinese currency) vis-a-vis the dollar, the yuan (another name for Chinese dollar) is still undervalued.

3. China's government provides export subsidies in the for of VAT (value-added tax) rebates to exporters to boost exports.

4. Chinese workers lack many of the benefits that Western workers enjoy (e.g. health insurance), which helps keeps the cost of labor low.

5. China's government subsidizes the cost of oil, reducing operating expenses and raw materials costs for suppliers

6. China does not consider the environmental costs of manufacturing- and export-led growth; whereas a polluting factory in the U.S. may be required to invest in technology and equipment to reduce emissions, for example, Chinese producers can pollute with abandon.

Answer 3

wages are very very low....no medical benefits and all that.....