The ethnic cleansing of Palestine

Chinese manufacturers have the capability to significantly undercut prices offered by foreign competitors over a wide range of products. Today, as a result of the "China price,"China has captured over 70% of the world's market share for DVDs and toys, more than 50% for bikes, cameras, shoes and telephones, and more than one-third for air conditioners, colour televisions, computer monitors, luggage and microwave ovens. It has also established dominant market positions in everything from furniture, refrigerators and washing machines to jeans and underwear ( yes, boxers and briefs).This article examines the eight major economic drivers of the China price and provides estimates of their relative contributions to China's manufacturing competitive advantage. Lower labour costs account for 39% of the China price advantage. A highly efficient form of production known as "industrial network clustering," together with catalytic foreign direct investment, add another 16% and 3%, respectively. The remainder of the China price advantage is driven by elements challenged as unfair trade practices by foreign competitors. These include export subsides, which account for 17% of the advantage, an undervalued currency (11%), counterfeiting and piracy (9%), and lax environmental and worker health and safety regulatory regimes (5%).