
Originally Posted by
publius3
Good points, I just wanted to expound on your post a bit since I am a former manufacturer. I ultimately spent a fair amount of time focusing on high quality production as opposed to differentiating based on price. Nevertheless, there were many things I could, and still can, make cheaper than China.
China has policies of export subsidies and formerly currency manipulation (China currently props up the yuan). I have been to Reading, Wilkes-Barre and other former industrial cities of eastern PA and the costs are stupendously low.
There are many products where the additional cost of labor in the US is less than the cost of freight from Shenzhen.
I can flat out beat them on cost on many items I might add, from motorcycle wallets to floor mats, for that matter even staplers. And the jobs created would pay $25+
However, I won't throw money at a location in Reading, open shop, start supplying these things and then have the Chinese turn around and simply subsidize my competition and then undercut me and throw me into bankruptcy.
Export subsidies make the price of subsidized items cheaper for American consumers of course but if China can subsidize tires they can subsidize staplers or floor mats, you name it, bottom line, don't be surprised when many Americans look at the potential for export subsidies to exist and decide that's not a game they're willing to play.