The supply chain is the principle advantage. Go to Hauquiangbei and show me the equivalent in the US. Then try and get tools made. It will be half or a third

The supply chain is the principle advantage. Go to Hauquiangbei and show me the equivalent in the US. Then try and get tools made. It will be half or a third of the cost. Get something laser cut/SLAd/vacuum molded etc and it just doesn't compare. There is a larger supply of suppliers hence more competitive prices. Just go on alibaba and order a sheet of aluminum and do the same from virtually anyone in the US. Energy is important but many of these materials and parts aren't originating from the US hence you are paying to ship all the parts, then assemble in the US and then ship to the customer. Instead the factories in China buy in mass from local suppliers and ship the end product once. The cost structure just ends up being superior. There are a lot of scraps also. Not shipping those as a result of shipping final products is huge as well.