because China has Perfect industrial system, and hardworking workers .
beat Chinese products ? ——I think not possible . in next few years , the world will more rely on Chinese products and make in China .
Chinese products are affordable AND high quality. Reason ? China controls its own supply chains and makes all of its components domestically. This is called economic sovereignty. Take EVs. The most expensive and crucial part of an EV is the battery. China controls the entire supply chain, from mining the REM, to fabricating the batteries, to assembling the EVs. All components are Chinese made. A completely self contained eco system. Chinese is already doing the same with semi conductors. Unlike the US, China will not use this economic leverage to bully other countries, like the US, which abuses its monopoly position to coerce other countries, dependent on American technology. China is willing to share its technology with others, except with unfriendly Western nations. Contrast the Chinese providing free Covid vaccines to African nations, whilst the West practised vaccine hoarding and refused to share vaccine patents. China does not practice mercantilsm, but economic sovereignty. China builds infrastructure in developing countries, training their employees in engineering. China want poorer countries to become prosperous, so they can afford to buy these high quality and affordable Chinese goods. Time to ditch the tired, old trope about cheap and nasty Chinese products.
It is beneficial for the world that Chinese products are cheap and affordable. This has a deflationary effect. It helps to counter the massive inflation that the US causes in the world through continuously printing money.
Chinese products are now affordable AND high quality. A Huawei smartphone is as good as an Apple iPhone. But a third of the price. Made in China is no longer about cheap and disposable Chinese goods.
Peter Ole Kvint
China has government subsidies for building new factories.The US has government subsidies for the production of unsaleable products.
China trains many engineers and other professionals.The United States trains far too few engineers and other professionals.
It will typically be four times too expensive to produce in the USA.
What makes it so expensive to produce in the USA?!
The reason America's large military has to be paid for by someone.
China has no Wall Street or big banking sector. So all the money that the US spends on this is wasted.
The expensive and poor healthcare must be paid for. At the same time that lack of treatment means that many cannot work.
The expensive and poor education system means that many do not get a useful education. And lead to a shortage of engineers and a surplus of lawyers.
The legal system is too expensive.
The prison system is the world's largest.
It’s the outcome of a free market.
The only way to compete is to improve the education system, and encourage innovation. It needs a stable society to achieve this.
The USA does not have the drive to go down this route, so has chosen to implement sanctions and trade barriers instead. This is like a loser in a competition changing the rules to suit themselves.
It's easy for the Chinese. They peg their currency to ours at a deflated rate. If we made a toaster, it'd likely cost more then $100 and the rest of the world would be unable to afford it. By pegging their currency lower then ours they can get away with selling them cheap in exchange for US dollar. They are an export country. Without having someone to sell to for a higher value currency they couldn't turn a profit. Same reason it's unprofitable to manufacturer here.
Robert Quek Former Retired. Prior Employment in Finance Sector
Competitiveness of products shifts. Chinese products are in the middle range, rising to the high range. It is less competitive in the lower range, hence many fast moving home products are made in emerging countries, like Vietnam and Bangladesh. Of course, they too will upgrade, so there is a ladder effect. At the higher end, advanced countries still hold the lead. They have advantages of being the main markets, marketing, and branding, but have to continually strive to maintain quality and reputation.
China is competitiveness in a very wide range of manufactured goods. It made every category of products through level-4 in the International Industrial Classification. How to beat it?
If you are an emerging country, better to dovetail your strategy with China, leverage on the synergies and networks it has already created. There will definitely be rich niches you can capitalize. If you are advanced country, innovate and ensure your quality and reputation, keep one step ahead of China as it marches up.
China’s fundamental advantages are its industrial ecosystem and economies of scale. The higher the volume or scale of production, the lower the average unit cost of the output, hence your point, “cheap and affordable”. The ecosystem and scale reinforces each other. Once, export was the driver. Now, it is the domestic market, the world’s largest and fastest growing. Export is still important, but more the reserve driver.
Industrial ecosystem: Capability from sample-making to prototype to batch production to mass production. Entire supply-chain networks in different industrial clusters, the companies creating synergies in the cluster and with each other. Efficient communication, transportation, and logistics, facilitate quick and easy connectivity - internally across the centres of production, through distribution and market, which becomes one, single, market countrywide, and - externally, from factory gates to warehouses to ports for shipments by air and sea. The world’s largest and most efficient sea-ports are in China. The entire process from production through to markets are well served by abundant trade and financial services, from handling through insurances and banking, through payments.
Particular aspects may be copied and even improved upon. The totality is hard to duplicate, maybe impossible. Production cannot simply be shifted without affecting the effectiveness and efficiency of operations. The case of Foxconn India is instructive. It shifted production of certain Apple model from China to India, and ended up with low capacity utilisation, high reject rate, and low-quality product. Dove-tailing with China is a better strategy.
Note: You may expect China to speed up the relocation of factories overseas. This is opportune for emerging countries. BRI countries are good potentials. They form an adjunct to China’s manufacturing.
There are actually a few reasons, first and foremost, they work for less wages, but that does NOT mean they are worse off or poorer, because everything else is cheaper as well, second reason is they mostly work more efficiently, thirdly better organisation as in supply lines and delivery saving substantial time and therefore money, all these make their products so much cheaper than if produced anywhere else. There are other reasons as well , like work skills,
there are some other countries than can produce cheap products as well, but none can beat China in logistics.
so beat Chinese products? FORGET IT you can’t.
Ngee K Low Former Senior Management
There are many reasons, the main ones are these:
* Huge economies of scale. The market size concentrated in one place create immense economies of scale. And they cannot be replicated by many small markets adding them together. Every country have unique production issues and once borders are crossed, their scale advantages reduces. Example, a Chinese factory can source supplies from all China without needing to cross custom clearance is a clear advantage.
* Trading culture. Chinese are natural and good traders. They are quick to sniff changes in prices of goods and supplies. And they change quickly to make adjustments. No other culture is as fast as Chinese adjusting to market conditions for a profitable trade. And the flexibility to change for profits. An example is smartphones, Huawei, Oppo, Vivo and Xiaomi produce whatever size and formats that markets want. Japan Sony is getting killed for staying with their formats that is boring and stale. Even Apple took a long time moving away from 3.5 inch size as they considered that ideal.
* Infrastructure support. No other country have the ability to build and upkeep such a huge tremendous infrastructure network like China. Their unique hybrid State and Private sector provides Chinese Govt with ability to mobilise resources, land and finances to build big and fast. West’s infrastructure cannot match because the returns are highest in finance and IT, and they suck most funds in that direction. It is all paper related activities only.
* Mobilisation and direction. CCP and Chinese dynastic/hierarchical structures enable Chinese Govt to be able to pool resources and direct their allocation quickly. That is why production can be focussed quickly on supplies to help the entire manufacturing chains.