2010

Economies ranging from the United States to Cuba have been termed mixed economies. The term is also used to describe the economies of countries which are referred to as welfare states, such as Norway and Sweden.

In a free-market economic system, manufacturing and production are based on the powers of supply and demand with little or no government intervention. China was a command economy before turning to a mixed economy with both communist and capitalist ideals.

Causes of China’s Economic Growth Economists generally attribute much of China’s rapid economic growth to two main factors: large-scale capital investment (financed by large domestic savings and foreign investment) and rapid productivity growth.

BEIJING — China is set to overtake the United States as the world’s largest economy a few years earlier than anticipated due to the coronavirus pandemic, analysts said. That puts China’s economy at only $6.2 trillion behind the U.S., down from $7.1 trillion in 2019.

Manufacturing Industry

According to the 2020 World Investment Report published by UNCTAD, FDI inflows continued to increase between 2018 and 2019, from USD 138 billion to 141 billion (+2%)….FDI STOCKS BY COUNTRY AND BY INDUSTRY.

In addition to its low labor costs, China has become known as “the world’s factory” because of its strong business ecosystem, lack of regulatory compliance, low taxes and duties, and competitive currency practices. Here we review each of these key factors.

These costs are less expensive in China than in the United States because the Chinese government imposes few health and safety or environmental regulations. It is a tax only on the “value added” to a product, material, or service at every state of its manufacture or distribution.

List of largest manufacturing companies by revenue

China Isn’t the Cheapest Place to Manufacture Anymore Bloomberg conducted a study and discovered that Indonesia had the lowest manufacturing costs in the world. Goods manufactured in the U.S. cost 5% more compared to their counterparts in China. And China is still 10-20% cheaper than major European countries.

Top 5 Countries with the Biggest Manufacturing Output

• China: $4T (28.37% of world total)
• United States $2.3T (16.65% of world total)
• Japan: $1T (7.23% of world total)
• Germany: $806B (5.78% of world total)
• South Korea: $459B (3.29% of world total)

Virtually everything today is manufactured in China. While it used to be that gadgets, gizmos and other products were made in the U.S., Taiwan or a brand’s home country, businesses are now outsourcing mostly to manufacturing facilities in China.

What would happen to China’s economy if America completely stopped buying it’s exported products? … Around 4% of China’s GDP and 3% of America’s GDP would temporarily disappear and then reappear as increased Chinese exports to Europe/Russia/Africa/India and increased US imports from those regions.

• Stance Socks: Made in the USA.
• IGI and Co Shoes: Made in Italy.
• Kiwi Knives: Made in Thailand.
• Wustoff Knives: Made in Germany.
• Victorinox Knives: Made in Switzerland.
• Le Creuset Cookware: Made in Thailand.
• Carhartt Clothing: Made in the USA and Mexico.
• Old Spice: Made in the USA.

For many Americans, the “Made in China” label has become synonymous with low-cost and low-quality. Han can point to several examples on product safety—toxic pill capsules, food contamination, and toys containing lead paint—as well as concerns about human rights in China and US-China trade disputes.