to some extent that's true.. but the real reason is cheap labor in china for their american industries.
in america, if you have an industry and if you have employees then the following needs to be legally provided by employers
- legal protection
- equal opportunity and no discrimination.
- state/federal authorized minimum wages per hour
- medical insurance
- pay taxes
- 401 benifits
- safe working conditions and environment
- ensure product safety guidelines, provide protective gear and all
- no overtime without pay
- provide HR services
- job security(can't fire employee without documented cause)
- legally accept labor/trade unions
etc
etc
all this adds to the bottom line of the product cost..
in china, being a communist fuck government? what benefits does it provide to its employees?
- NOTHING.
this cheap labor contributed to the rise of companies like Apple, Walmart, Amazon etc.
its merely cost 7$ to assemble an Iphone in china (back in 2007/08) while the product is sold at 600$ minimum. (lets not talk about cost of developing IOS, softwares and app) that a different story.
so those 20 years beginning from 2000, china saw raise in magnitude scale.
china realized that its time has come to become superpower during 2008/09 economic recession.
china became the first country after ww2 to provide loans to america to keep its economy running.
things changed after this bailout events.
blogs.wsj.com