Author: dannycool

Why are Chinese products so cheap?   [Copy link] 中文

Rank: 4

Post time 2007-4-26 17:27:45 |Display all floors

other reasons

China lacks a complete legal system to supervise employers, especially in the law class industry. So Chinese employers save a lot money by abusing employees in many ways like over timing working with no extra bonus, lower cost on employee’s health care and not paying other life and property insurance in one word employees enjoy comparatively low welfares.
Another point is that, China lacks a complete taxation system other business regulations and laws. Tax dodging is common in China. And pirates fill every market in China. Most Chinese goods do not contain the intellectual property costs.
Anyway, for Chinese people we are enjoying wonderful material life since goods are cheaper.

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Rank: 4

Post time 2007-4-26 17:56:31 |Display all floors
Originally posted by hooiluangoh at 2007-4-25 10:54

I didn't find energy cheap. In fact, one look at the expenses of a typical factory (legal), energy comes out to be one of the most expensive, unless they got around it with the officials and have their own generators which start polluting the surrounding environment. Plus the factory has not much good insulation to talk about, a real waste of energy.

Transport is definitely definitely not cheap. Petrol/Diesel is expensive. Tolls are horribly expensive.

Distribution of Chinese goods go through well-established network, making it cheap to produce in large quantities.

Exploitation of labour and environment are two major competitive advantages manufacturers in China possess.

I' ve heard a factory paying a guy just because of its Guanxi with the energy official. The guy just reads newspapers.
(Keep It Simple, Stupid)

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Rank: 4

Post time 2007-4-26 19:04:54 |Display all floors
he, he even in the office and reading newspapers, many people just hang on the position, but you can not see him. this is very common in china. in chinese: 尸位素餐

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Rank: 8Rank: 8

Post time 2007-4-27 11:38:42 |Display all floors

Reply #31 mrjingles's post

Oh! You means like AMERIKAN PROPAGANDA OFFICIALS....just read newspaper and try to change "point of view" by use of "network" (aka Guangxi).

ha ha ha

Green Dragon

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Rank: 4

Post time 2007-4-28 13:29:54 |Display all floors
low price of labor force is the main reason.Now some countries can compete with China,like India. As the process of CNY appreciation going on, we gradually lose our advantage at prices. It's time for us to restructure of our industry regime, we should shift from low value added products to high value added products. intellectual property rights also very important.

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Rank: 1

Post time 2007-4-28 22:50:40 |Display all floors

My opinion

First,chinese products have no intellectual property rights,No brand,all easiler copy, that make both factory and trade company not dare to charge too much profite.

Second,private small factory,the opearting cost of familiy factory is much lower than big factory,what's more,small factory are professional at making only one product,use only  one mould, that can deduct the cost to the lowest.

Actually chinese laber cost is not low,compare to other asia countries,for example ,in east china like Zhejiang,the labor cost already very high,but  here the factories are much more professional ,so they  still can controll the cost.That's why other Asia countries their labor cost even lower but their product costly.

Third point is also very important, pepole are hard working and their attitude to work is positive.You can feel the difference if you have ever seen other asia countries' workers  or afirca people, here,in china you rarely see lazy workers.

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Rank: 4

Post time 2007-4-29 00:42:43 |Display all floors
Folks, don't listen to the fools.

Chinese goods are of good quality and cheap.

I have seen lots people in europe using China branded wireless modems.

BTW, under the european patent laws, online filing can only be done using appropriate hardware supplied by the European Patent Office (EPO) or acceptable to the EPO.  Guess what? The smart card reader provided by the EPO is made in China.

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