4 ms·

Lowering costs and increasing margins is the game of the business everywhere, east or west. It is largely the policies of Chinese government that made manufactu

by oytis 4y ago

Lowering costs and increasing margins is the game of the business everywhere, east or west. It is largely the policies of Chinese government that made manufacturing in China especially lucrative, even considering the bad business culture.

ChuckNorris89 4y ago
>Lowering costs and increasing margins is the game of the business everywhere Sure, but there is no free lunch. You're getting cheaper stuff but for that you're sacrificing your local industry and the environment by offshoring the environmental damage to places with less environmental protection laws. There is no free lunch. The right way to lower cost is by pursuing automation, not by offshoring the environmental damage and using sweatshop workers in areas with human rights violations.
- tomrod 4y ago
  If you avoid the cost, you benefit from an externality and have a free lunch for a limited time (or, lunch someone else paid for)
- oytis 4y ago
  Thinking about local industry and environment is a government's job I would say. Government sets the rules, and businesses optimise profits under these rules. I would say Western governments did a poor jobs protecting their countries from unfair competition from China, but also the practices are indeed unfair, I can't agree Chinese government is not to blame.
- trasz 4y ago
  >sweatshop workers in areas with human rights violations Such as USA with $11B of goods manufactured by forced labour in prison camps? (Note: this is not whataboutism, it’s pointing out hypocrisy.)
cosmodisk 4y ago
The service company I used to work for got acquired by a much larger US based company. So the CEO flew in to to do some presentations, answer questions, etc. One thing that stuck in my head was when he was talking about price based competition: there are people flying in private jets around the globe negotiating a single penny off a dollar and that won't stop any time soon.

by oytis 4y ago

ChuckNorris89 4y ago

>Lowering costs and increasing margins is the game of the business everywhere Sure, but there is no free lunch. You're getting cheaper stuff but for that you're sacrificing your local industry and the environment by offshoring the environmental damage to places with less environmental protection laws. There is no free lunch. The right way to lower cost is by pursuing automation, not by offshoring the environmental damage and using sweatshop workers in areas with human rights violations.

tomrod 4y ago
If you avoid the cost, you benefit from an externality and have a free lunch for a limited time (or, lunch someone else paid for)
oytis 4y ago
Thinking about local industry and environment is a government's job I would say. Government sets the rules, and businesses optimise profits under these rules. I would say Western governments did a poor jobs protecting their countries from unfair competition from China, but also the practices are indeed unfair, I can't agree Chinese government is not to blame.
trasz 4y ago
>sweatshop workers in areas with human rights violations Such as USA with $11B of goods manufactured by forced labour in prison camps? (Note: this is not whataboutism, it’s pointing out hypocrisy.)

cosmodisk 4y ago

The service company I used to work for got acquired by a much larger US based company. So the CEO flew in to to do some presentations, answer questions, etc. One thing that stuck in my head was when he was talking about price based competition: there are people flying in private jets around the globe negotiating a single penny off a dollar and that won't stop any time soon.