China has been making things for a long time. In fact, the country has been making things for much longer than the United States has. This is not because China is inhabited by crafty, dexterous, and cunning people. It’s because China has always been a producer-driven society with low tariffs and cheap labor. Things make sense in context: China is home to the world’s largest population; it’s had an abundance of cheap labor since its imperial days, and its citizens have historically had a tendency towards manufacturing and trade. You might also say that China was primed for producing everything under the sun – just not yet from behind high walls and tariffs. In this article, we’ll explore why China has made everything while America only makes some things: what led to this situation, what it means for consumers, and how it might change in the future.
Why China Makes Everything?
Because they can. They have the resources, manpower, and ability to make any product cheaply while maintaining quality. For example, they can produce a piece of clothing for 50 cents, while it costs us $10.00 to make the same piece of clothing here in the US. I don’t know why Americans seem to think everything is cheaper in China, but this shows you that’s not true. If you’re going to produce anything, manufactured or not, China is the place to be if you’re looking for cheap labor and mass production.
What Is The Reason China Makes Everything?
1. The People
The people in China are very productive and they have the ability to make everything. They are hard-working, innovative, and creative. They are also willing to work for extremely low wages. To give you an example of how many people there are in China, there are approximately 1 billion people living in China as of this writing. The US population is only around 325 million. That is a huge difference when it comes to the labor pool available in China.
2. Low Tariffs
China has had a very low tariff policy since its imperial days and it continues to have one even today. A tariff is a tax on imports. In the US, we have an average of 10-15% of goods coming into our country from other countries. China has a very low tariff policy and, therefore, the goods coming from China are extremely cheap to us. This is especially true when it comes to labor costs. I have mentioned before that Chinese workers are willing to work for extremely low wages and they are able to do so because of the low tariffs in place in China.
3. Cheap Labor
China has cheap labor because its people work hard for very little money and there is no government regulation keeping wages down. To give you an idea about how cheap labor is in China, you can find a factory worker making around $150 a month, which is pretty much all she makes after paying her rent, food, and pay for her transportation to work every day (in most cases). That’s why everyone wants to go to China and get rich – that’s how cheap the labor is.
4. Low Costs of Production
China is able to produce almost everything for less money than any other country in the world. This is true because they have very low labor costs and the government allows them to keep the prices low by not requiring them to pay any taxes on their goods. This also allows China to keep their manufacturing costs down, which lowers the price of their goods for us.
5. Cheap Goods
The cost of producing goods in China is extremely cheap, so there are many products that are made in China that are very inexpensive compared with what would be produced in other countries. For example, you can buy a laptop computer for $350-$400 and it’s not even comparable to a laptop computer we can buy here in the US at anywhere near that price point. You can also find electronics like cell phones and video games that are made here in China that are very inexpensive compared with similar products you can buy here or even abroad from other countries.
6. Low Costs of Labor
The cost of labor in China is extremely low because it’s the only way the country can compete with other countries in producing things like computers and electronics. The government keeps the price of labor down by not requiring that workers be paid very much, so there are many people who would rather work for very little money than have to pay a high wage to get a job.
A Brief History Of China’s Trade Environment
1. Pre-1949
Before 1949, China was a very closed and isolated country. It was extremely difficult to get in or out of the country, and it was not possible for foreign companies or individuals to establish factories in China. All trade between China and other counties had to be done through a government agency called the Ministry of Foreign Trade. This organization oversaw all trade between China and any other countries. The Ministry of Foreign Trade was also responsible for making sure that all foreign trade went through channels that would not be considered harmful to Chinese national interests, such as controlling the flow of information and technology that could be used by foreigners against China.
2. 1949–1958
After World War II ended, many countries wanted to reestablish their control over areas that they had lost control over during World War II. This included parts of China that had been ruled by Japan before WWII ended, like Manchuria (which is now known as Northeast China). Because Japan ruled over these areas for a long time, people in China felt that these areas should be returned to China. This led to a major conflict between China and the Soviet Union (which had also lost control of many areas of Eastern Europe during WWII) over which country would get these areas. The Chinese won this conflict (although this is not widely recognized), and they used the weapons that they had won from the war to fight against any other countries that tried to interfere with their efforts to gain control of these areas.
3. 1958–1961
After China’s victory in its conflicts with the Soviets, it was able to take control of Manchuria, which is now known as Northeast China. At first, there was no problem with foreign companies being allowed into China and establishing factories there because there were no other countries around at this time who could interfere in their activities. However, as more foreign companies wanted to set up factories in Manchuria and Northeast China, other countries began interfering with Chinese attempts at gaining control over these areas. This led to the Sino-Soviet Split in 1958, which was a major factor in the Chinese Civil War.
4. 1961–1962
The Sino-Soviet Split that occurred in 1958 led to many countries interfering with China’s attempts at gaining control of Manchuria and Northeast China. This included other communist countries (such as Cuba) who wanted to support the Soviets in their conflict with China, as well as non-communist countries (such as South Korea) who were worried about the possibility of an attack from China on their country if they supported either side in this conflict. In 1961, China sent its soldiers into Manchuria and Northeast China for the first time since WWII ended, which started what is now known as the Chinese Civil War.
5. 1962–1966
The Chinese Civil War lasted from approximately 1962 until 1966 and involved many different countries fighting against each other on behalf of different causes (such as communism vs capitalism). During this time, the Chinese government was trying to gain control of the areas that it had lost during WWII (such as Manchuria and Northeast China), while the Soviets were trying to take control of those same areas. This led to many conflicts between countries in Asia, including conflicts with India, Pakistan, and North Korea.
Conclusion
China has been making things for a long time, and the country has had a long tradition of being a producer-driven society. This has made it the ideal place to produce inexpensive goods quickly and efficiently. Whether or not the US and China settle their current trade dispute, China will continue to make everything. The only thing that might change is that Chinese manufacturers may have to produce more of the things that they consume.
