Why are chinese goods on average cheaper for americans than americans made goods

there are many ways that China uses to produce cheaper products. But mostly it is an unfair strategy to take over other countries markets and drive foreign companies out of business.

Lower wages for Chinese workers can lower the costs of Chinese products. Forced membership into one government trade union keeps wages low and stifles complaints from workers. This allows the government to control all wages. Foreign companies are also forced into using workers from te governments trade union.

Anoter major way Cina reduces the cost of its products is the lack of regulation. Environmental, health and safety laws are not enforced. Chinese companies do not have the same costs as other foriegn businesses. China is one of the most polluted countries in the world. There are no workmans compensation laws in China for employees hurt or disabled while working.

China has a VAT or value added tax system. The VAT taxes raised on companies who export thier products is returned to Chinese companies while foriegn based companies or imported goods are charged a VAT tax that is not returned. The US has no VAT tax.

China requires akk foriegn companies in China to have a Chinese partner. The Chinese partner holds the majority intrest in the company and controls most of the profits.

China also dumps Chinese goods on foerign markets. Dumping is exporting products into another countries markets at below manufacturing costs to take over a portion of the countries market for a product. Dumping puts foreign companies out of business allowing Chinese companies to dominate the market.

China also does not abide by patent of intilectual property laws. They freely copy any and all goods. China also uses industrial espionage to steal foriegn technology from other companies. This allows them to not have to absorb the cost of research and development.

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

hope it ,

bioteacher101

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