Why is it cheaper for Retailers to buy products from China than products made here at home (USA)?

I know this is nothing new. Furniture & other goods have been pouring into America for a long time, but I recently bought some Plywood from a small Hardware Store & the bundle said "Product of China".

How is it possible that we can by plywood from China shipped halfway around the world & then Trucked to middle America, cheaper than it can be made locally?

Update:

Nastradamas 2012.....you had me for a minute......until you start spouting dem BS about Unions & Tax rates.

Business regulations, Highest Corparate taxes in the world http://www.heritage.org/federalbudget/corporate-ta...

& yes BS Trade agreements/Free Trade are ALL to blame!

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  • Best Answer

    Unions and the 35% corporate income tax rate (highest in the developed world). Any large business that remains to stay in this country and does not necessarily have to is stupid.

  • 8 years ago

    because our foreign trade policy is anti-american.

    we allow china to tariff our goods at over 10 times what we charge them.

    yet this insane imbalance and the incredible damage it's done to the american economy and way of life is literally never talked about and is not an issue in this year's presidential election.

    but i'm curious - do you think the american middle class should be paid the same as chinese workers?

    if american middle class workers lose their financial clout - who will buy the world's products?

    the 900 million peasants in china?

    i don't think so...

    by the way - to those who say it's unions and taxes - unions currently make up less than 7% of the amiercan workforce. those who have sought to destroy unions and the way of life that goes along with them have succeeded. this means they will need to find a new boogie man to LIE to the american people about.

    also our corporate tax rate is NOT the highest in the world - this is an oft repeated lie that everyone believes - but it's simply not true. corporations, as a percent of taxes collected, pay less than they have in over 70 years.

    Source(s): we need to even all of our tariff agreements asap - our national viability depends on it!
  • 8 years ago

    The standards, quality and wages payed to workers are usually a lot lower which equals cheaper prices. I am a jewelry designer I typically make a lot of my pieces with Austrian crystals that cost 5 dollars for 12 tiny 4mm beads. I can by Chinese glass that looks almost the same with less sparkle for 5 dollars for 1000 4mm beads.

  • 8 years ago

    It's a combination of currency manipulation and cheap labor, which have already been mentioned, and government subsidies. The reason companies like Solyndra fail is because the Chinese government subsidizes the cost of the solar panels made in China so that they can be sold at half the cost of production anywhere else.

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  • 8 years ago

    Well, when you don't have to care about your workers, but can keep them locked up in dormitories, and prevent them from seeking a better life, when you can throw out your waste without proper disposal and let somebody else pay the burden of clean-up, when the government actively helps you by shooting anybody who protests for better working conditions...you can do things cheaper.

    But better? Not really. American worker productivity exceeds that the average Chinese worker, and the quality of work is even better.

  • 8 years ago

    It has to do with China's buying of US currency shares. Should China ever switch to Yuan for trade, it'll look differently.

  • Anonymous
    8 years ago

    They workers get $140 a month and production deals with vast quantity's.

  • 8 years ago

    Because the cost of production in China is dramatically lower than it is in the US.

  • ?
    Lv 7
    8 years ago

    Simple: China essentially uses "slave labor" as opposed to our high-priced union labor.

  • 8 years ago

    What they said :)

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