How did Chinese people dominate the whole world with their products and
From Rusty Wyse@21:1/5 to All on Tue Dec 21 10:42:18 2021
China - World Leader.
Answered by
Michael Chibuike Okezie
Dec 9
How did Chinese people dominate the whole world with their products and at affordable prices? How did they do it?
China has an educated workforce. Even though the country was impoverished for the most part of the 19th and 20th century, literacy level after the exit of Mao from power skyrocketed from 1978. It was tagged ‘The Single Greatest Educational Effort in
Human History’ - Language Magazine . An educated population is a asset to any nation.
The Chinese are hardworking people. The culture of diligence is ingrained in the DNA of the nation. At the time Deng Xiapong introduced some of the economic reforms the country had an abundant surplus labour and very cheap. I also believe the economic
success of Japan inspired China. The economy was modeled to be export-oriented. Due to low economic development there was not much demand at home so China targeted oversea consumers albert their products inferior compared to those produced in the then-
industrialised nation. With time the quality of Chinese products improved.
Companies in developed nations looking for cheap labour trooped to China in order to cut production cost. This inadvertently engendered technology transfer and hence indigenous manufacturers were able reverse engineer the products of these foreign
companies, consequently the technology gap began to shrink.
Given that made-in-China products were relatively cheap they outcompeted their pricey substitutes. About 80% of the world's people live in developing countries. Chinese goods found markets in these developing countries. Gradually, China displaced Japan
and later Germany as the biggest exporter in the world and also became its biggest trading partner.
Even though it is not a democratic nation, economic freedom in China is unbound. Absence of bureaucracy and lengthy legislative processes have enabled the government to implement economic policies swiftly. The Chinese government enjoys such privilege and
it gives it an upper hand to channel resources in critical areas of the economy that to solidify its manufacturing lead.