Chapter 1. The “China Price” and Weapons of Mass Production
The China Price. They are the three scariest words in U.S. industry. Cut your price at least 30% or lose your customers. Nearly every manufacturer is vulnerable—from furniture to networking gear. The result: a massive shift in economic power is underway.
China has an official policy for the economy to grow at 7%–8% per year, the rate which the ruling mandarins calculate is needed to create about 15 million new jobs a year, to absorb new entrants into the labor market and discards from the shrinking state sector. Every policy, from the value of the Chinese currency to the delay in closing an unsafe coal mine, is calibrated to ensure that economic output continues to ...