Some of the cheapest goods in the world are Chinese. Despite the fact that their cost increases many times over, while the products are delivered from China to Russia through a chain of intermediaries and go through customs, in the end they still turn out to be no more expensive than their Russian counterparts.
One of the most common misconceptions among Russians is that low-quality goods are produced in China, which is why they are so cheap. In fact, the quality of most of the Chinese products is not inferior, and often even surpasses, the quality of Russian goods.
Features of the Chinese economy
One of the main reasons for the low cost of Chinese goods is a cheap labor force, employed mainly by low-skilled and low-productivity labor. The cost of skilled labor in China, as well as throughout the world, is growing every year. The main supplier of low-skilled labor is the Chinese village: for many peasants in China, any work in the city is the only opportunity to move to this city and gain a foothold there. The productivity of any kind of labor in China is many times lower than in advanced economies. And the payment for such work is appropriate - more than 10% of the population in the Celestial Empire live below the poverty line, earning below the subsistence level.
As the cost of labor in China still grows, many experts believe that over time, production from the world's leading countries will not be transferred to China, but to countries with even lower labor costs - to Burma, Indonesia, Bangladesh or Vietnam. So far, this is hindered by only two factors: these countries do not have as many human resources and production base as in the Celestial Empire.
The second reason is the huge industrial clusters concentrated in the southeastern provinces of China. Many large cities such as Beijing, Shanghai and Guangzhou, in fact, have become giant manufacturing centers, around which are also located various additional and auxiliary production. It is the high concentration of production that makes it possible to save on infrastructure development and logistics.
State support measures
The third reason is the tax policy pursued by the Chinese government. The government-developed system of tax incentives, concessional lending programs, land benefits and land leases - all of this represents an effective system of support for Chinese manufacturers. At the same time, businessmen in China in the eyes of their compatriots belong to the category of honorable and worthy people, and not capitalist exploiters. An effective system for combating corruption can be classified in the same category - it is known all over the world that civil servants in China can be shot for accepting a bribe. And not just like that, but publicly, with a broadcast on television.
