Why are China’s exports so cheap?
China is the world’s largest exporter of goods, accounting for 14.7% of global exports in 2020 . China’s exports are known for being cheap and competitive, enabling the country to dominate many markets and industries. But what are the factors that contribute to China’s low-cost exports? This article will explore some of the main reasons behind China’s export success. China’s export industry overview China’s export industry has grown rapidly since the country’s economic reforms and opening up in the late 1970s. China has transformed from a largely agrarian and closed economy to a global manufacturing powerhouse and trading partner. China’s export industry is diverse and covers a wide range of products, from clothing and toys to electronics and machinery. Some of the major export sectors include electrical machinery and equipment, machinery and mechanical appliances, furniture and bedding, plastics and articles thereof, and vehicles and parts. According to the World Bank, China...