More than 150 million Chinese people live in poverty and are willing to work for pennies. This circumstance is used by manufacturers.
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WHY CHINESE GOOD ARE SO CHEAP:
3 IMPORTANT REASONS
It has been said that Chinese goods are of poor quality and, therefore, cheap. But this is already a myth. Products from the Chinese People's Republic are approximated and sometimes surpass in the quality of products around the globe.
The production uses modern equipment and advanced technologies, duties at the import of production are very big but, despite this, goods from China are cheaper than the Russian ones. Let's see why.
THREE MAIN REASONS FOR LOW PRICES
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CHEAP MANPOWER
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MASS PRODUCTION AND HIGH CONCENTRATION OF LABOUR IN THE SOUTH-EAST
Shanghai, Guangzhou, Ningbo, Beijing and other cities have become industrial centres for the manufacture of metal products, cars, equipment, construction materials, rubber and plastic products. China has achieved significant results in the development of infrastructure and diversification of logistics.
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TAX AND FINANCIAL POLICY
There are numerous tax remissions, attractive credit programs. Chinese producers get support in the form of cheap rent and reduced land tax. The Chinese do not consider businessmen as thieves and unworthy people. On the contrary, they appreciate and respect businessmen.
Experts predict the rise in prices for the Chinese manpower in the near future and the transfer of some factories to Vietnam, Indonesia, Cambodia and other countries with cheap labour.
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