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What is "China Price"?

"Made in USA China' Price Tag: Thousands of U.S. jobs"
The Three Scariest Words in US Industry: "The China Price"
"Even manufacturers that have weathered past import waves are being swamped by China's combo of low prices and high tech..."
"Researchers report that up to 100,000 U.S. jobs are being lost to China every year"

These Flash news are all a result of a phenomenon now better known as China Pricing.
But what exactly is China pricing?

"The China Price" is a phrase owners, workers, and shareholders at American manufacturers have learned to dread. Business Week calls it "the three scariest words in U.S. industry." The China Price is the absurdly low rate (approximately 30% less price) at which a good or service can be provided by the Middle Kingdom 'Zhonggou' (China).

Powered by the world's most rapidly changing large economy, China is an ever increasing presence and influence in our lives, connected to us by the world's shipping lanes, financial markets, telecommunications, and above all, by the globalization of appetites. China sews more clothes and stitches more shoes and assembles more toys than any other nation. It has become the world's largest maker of consumer electronics, pumping out more TVs, DVD players, and cell phones than any other country. And more recently, it has ascended the economic development ladder higher still, moving quickly and expertly into biotech and computer manufacturing. It is building cars (there are more than 120 automakers in China), making parts for Boeing 757s, and exploring space with its own domestically built rockets.

Americans tend to focus on the huge inequality in trade between the two countries. It is a worry Americans help to create by buying ever more from China's humming factories.

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* Contributed by -
Syam Krishna V. K. ,
B.Tech. (Prod. Engg.), Kerala University,
MBA 2007, DOMS, IIT Madras.