Why Is The Chinese Product Cheap?

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Why Is The Chinese Product Cheap?
Why Is The Chinese Product Cheap?
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Video: Why Chinese Products Are So Cheaper | China 🇨🇳 Manufacturing Hub of the World? | Live Hindi 2023, February

China is rightfully considered the world leader in the mass production of goods in various fields and various categories of complexity. China has taken its trade niche in all positions due to the many positive and negative sides. The main advantage of such a large-scale production, of course, is the low pricing policy of certain groups of goods.

Why is the Chinese product cheap?
Why is the Chinese product cheap?

Labour Organization

Over the years, Chinese goods do not rise in price, but become cheaper, and this is really surprising, because salaries, taxes and many other payments are growing every year, and these are the costs that should affect the cost price. China's secret is in its workforce. An ordinary employee of a state enterprise, of whom the majority in the Middle Kingdom, are low-paid, many people receive wages below the subsistence level.

It should be noted that most often ordinary workers are people from villages, they are poorly educated and not qualified.

As of November 2013, about 120 million people work in China, a normal working day lasts 12 hours, there are two lunch breaks - 15 minutes each, there are no exits to "smoke", and a fine is imposed for idle time. It is obvious that labor productivity in such conditions is significantly higher than European or Russian.

The organization of labor also affects: all operations in production are strictly regulated and divided into manipulations. So, one worker assembling a product can insert only one nut and not know at all what he is doing. But he inserts the nuts with his eyes closed, quickly, on the machine.

Mass character

The secret of cheapness and mass production. The entire economic policy of China is directed at this factor. All cities have their own trade sectors, their own purpose. For example, Shanghai is engaged in mechanical engineering, while Guangzhou is developing the building materials market. Such a distribution of areas of activity allows you to cover the trade direction and obtain a conditional monopoly.

It is impossible not to note the policy of China in the field of taxes and finance, aimed at lowering prices for goods. Tax fees in China are much lower than in Russia, and there is a whole system of tax incentives and various forms of lending. All of this helps to develop, guide and support the business of Chinese entrepreneurs.

Someone else's ideas

China practically does not have its own developments, the mass produced goods, as a rule, are a copy of a foreign brand.

It is known that development is up to 35% of the cost of the final product, while the Chinese save on this.

It is not for nothing that it is believed that it is China that is the leader in the number of fakes of various branded items, cheap electronics and medicines, as well as in the production of fakes of elite watches. Most often, such products are of a low quality level, and some even pose a danger to human health. However, factory-made Chinese things can be quite high quality, albeit cheap.

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