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6 answers

Labor costs are perhaps the biggest factor.

This low labor rate is cascaded down from the most basic components and materials that go into the finished product. Most of those are also "made in China" with low labor costs.

Low labor costs + inexpensive materials = Low cost product

In some cases complex products from other companies are reverse engineered. This keeps the product development costs down.

"Patent, what patent?"

2007-06-21 07:05:04 · answer #1 · answered by Thomas C 6 · 0 0

Quality standard is always subjective and open to debate.
Whose standard?, what is the benchmark?, how was the benchmark determined , where did the data come from.

The quality of Chinese manufacture is not that high , take their motorcycles for example, very average finish, very low quality steel and Japanese motors.

Try getting a warrenty or repairs done!

Also the Chinese will not let motorcycle distributors sell direct , everything is on a consignment basis. No sale No payment !

Chinese maintain the cheapness of their products through extremely low wages by Western standards, Government subsidies, and an indentured labour system.

There standard of OH and S is pitiful and that is a major cost to western countries.

In China there is no compensation or poayout, you get hurt at work or killed , not a problem 1.7 billion others are ready to take that job.

Westerners buy Chinese products cheaply because they are an exploiter of the Chinese labourer.

What most Westerners get paid for weekly to do the same job would take a Chinese labourer a year to earn.

2007-06-21 08:09:02 · answer #2 · answered by Anonymous · 2 0

The market demand will dictate the quality of their products.

Generally, in my opinion (and because of my work experience with my employer), if the parent company of a Chinese manufacturer is non-Chinese, then quality standards, and the actual quality of their Chinese-made products, are higher. The parent company will monitor the quality of their Chinese-made products and make process changes accordingly. However, if the company is soley Chinese, standards are much lower and they are likely to only sell their products to customers who don't demand quality.

Therefore, because labor is much cheaper in China, a non-Chinese company can come in, manufacture their product for much cheaper, but maintain quality by active product monitoring. However, I believe that the quality of products produced by wholy Chinese companies is much lower (for now anyways).

2007-06-21 09:42:06 · answer #3 · answered by Bruce O 3 · 0 0

Their labor costs to manufacture products is low.

2007-06-21 08:06:24 · answer #4 · answered by nosillenhoj 4 · 0 0

Through government subsidies and cheap raw materials and lobour. They have dedicated highways for this purpose and so the transportation cost is minimal.

2007-06-22 02:51:42 · answer #5 · answered by J 3 · 0 0

Chines quality is rather poor. Havent you been awarea of the numerous recalls??

2007-06-21 10:07:34 · answer #6 · answered by bignose68 4 · 0 0

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