The issue itself is actually not complicated. Most media simply do not want to acknowledge the positive part about China, so they over-emphasize the advantage o

The issue itself is actually not complicated. Most media simply do not want to acknowledge the positive part about China, so they over-emphasize the advantage of low labor costs. Putting aside those clichés, China has the most complete set of industrial sectors, the fastest-growing density of industrial robots, and a large number of skilled workers. Every part of the industrial supply chain and raw materials can be supplied domestically, allowing prices to be pushed very low. These factors may already contribute more than cheap labor. Keep in mind that most Southeast Asian countries have cheaper labor than China, yet they cannot manufacture cars cheaper than China. Take BYD as an example. Its wages are much lower than Tesla’s, but BYD has nearly one million employees, most of whom are in China, and many of its factories are in non-major cities. The wage levels in those places are certainly higher than in Vietnam, and BYD’s wages are higher than the local average. Thanks to China’s advantage in cost of living, a BYD employee earning 5,000 RMB (>700USD) a month can actually live quite well in a non-first-tier city. Rent is below 1,000 RMB, and cooking at home usually costs only a few hundred RMB. They already belong to the local middle class and generally do not face much financial pressure.