The Chinese Gov still owns part of the factories (they were once Nationalized). This gives these factories an advantage because profit is not as important as em

The Chinese Gov still owns part of the factories (they were once Nationalized). This gives these factories an advantage because profit is not as important as employing people and expanding their catalog of goods. These same companies get credits in the form of payments to sell and ship internationally (10%-15% of the Bill of Lading). I have dealt with quite a few Chinese factories since 2000 and they have always been able to provide machine goods below the price of raw materials in the USA/Canada. One area their machine shops aren't so great at is screw machines, they prefer to use CNC's for almost everything. I do remember a time when what they made was absolute shit but they got better and better over time as they learned and perfected the process (at my expense..lol) There is also the chance they already make what you buy for someone else so your business is additional. If your item is unique they will add it to their catalog to sell to others. They are also willing to work at a small loss or break even to gain your business because they are heavily supported by the Gov. Other countries don't do this because most businesses are private, there are penalties against countries that subsidize industry, etc. For a long time, the US allowed Chinese companies to take advantage of American Manufacturers. They were granted "Most Favored Nation Status" because they promised to buy from the countries that honored it but that has changed over the years and didn't work out as planned. These days costs for materials in North America and Europe are higher since the Governments don't own steel mills and work at cost. So manufacturers pay more and labor is another big part of it along with energy costs. Everything in China is subsidized to give their manufacturing sector an advantage. It has worked out well for them until now.