Chinese resellers can ship products to American homes cheaper than i can mail them from with The US.
How is this possible?
Like you said, subsidies.
However, i also believe these subsidies are coming from sources inside The US that want America dead. (probably through bond trade)
I once tried to work out manufacturing toasters in America, using old tin cans as material input and my friends as labor. I still could not compete with Chinese toasters at Wallymart.
I could not compete using free materials and free labor. The price of the remaining components cost more than the complete toaster.
And i find this in almost everything i think about manufacturing.
China is about to self-destruct. And it is going to leave many countries without products. Scrambling to recreate their industry base.
RE: The 21st Century Is China’s Story