How does this make economic sense??

A product is made of ingredients made in the USA. They ship those ingredients to CHINA, where they mix them up, and then bottle and package the product. The Product is then shipped back to the USA and sold. Even IF the labor cost is cheaper in CHINA, How can they make a profit on each bottle when you add in the shipping cost to and from China??

Because the labor is waaaaaaaaaaay cheaper than the shipping. And remember the value per unit that they are shipping back is higher. The cost of the plant and equipment in China is less than a similar plant in the US and don't overlook insurance and healthcare costs.

Because the labor is SO ridiculously cheap. Like 17 cents an hour cheap.

But climate change, carbon footprint and all. I hope they are using sail boats for the environment sake and follow all epa rules over there.

If things keep going the way they are we'll be needing to set up all manufacturing & marketing here. Global commerce isn't looking good for the future

We need to be much more self sufficient as a country, especially when it comes to processing and manufacturing metal products made of lead, iron, steel, copper and brass. We also especially need US food products.

Keith

Medical supplies also as we recently found out.

Keith, don't forget medicine, and no food should come from china, you cannot trust them!

I asked my BIL who is in the steel industry about this very thing. He told me the price of shipping is so low they can ship cheaper than making it here. Along with the much lower wages paid over seas.

It's not just labor a big factor is environmental regulation, when you can just dump your waste in the ocean or local river it's a lot cheaper to process things.

Huge barge loads of corn gluten feed is loaded on barges in Eastern IA pushed down the river loaded into huge ships and sent to china where it is processed and canned into dog and pet food and shipped back to the USA and trucked all over the country. It does not seem to make sense but it must make economic sense. Shipping is the lowest cost form of moving goods and with low cost labor they can save money on each can and make a better profit. Don't know if the huge box stores like WalMart etc. want to start negotiating with US firms for stuff that is more expensive or not. For all the things I find negative by Amazon what they can and do do is buy from thousands of small businesses that produce and make products. They provide the marketing portion, but employees at Amazon have a hectic and tough work experience in many cases.

Bryce

As in there are actual industries in China that don't pay labor at all. China has one of the largest penal systems in the world. You can make a lot of things cheap with millions of slave laborers, have to feed them anyhow...

I didn't even consider this until now. I suppose that's another incentive to keep the Uighur's in camps beyond harvesting organs.

workmans comp , unemployment insurance , medical , retirement , overtime , and environmental concerns .

I couldn't understand how scrap steel being sent to China ,recycled and sent back to be sold cheaper back in the USA. I was told they load it on s big boat then pull out just beyond the international line, recycle it into new product and pull back into port. Sure doesn't seem right.

The Chinese have a ship with a factory that can make plywood and chipboard. They can load the raw materials on the West Coast, go out to sea, and return with the finished product.

Remember too that the CCP has to keep people "working" so they don't revolt. Look at all the cities they have built that are deserted !!

Health care costs are inevitable, whether the business or government pays for them. The people will pay them.

But health care costs are much cheaper there, as in the rest of the world, because they aren't subject to runaway capitalism. For an example, doctors in China don't expect and demand multi-million-dollars-per-year compensation just to practice their calling.

Jim

neither do lawyer

Run away capitalism is not to blame , its government mandates , and third party payer fraud among a few other things that have ruined health care affordability in America

I was told by someone that works in the auto switch industry that they get a 60% tax cut when assembled in China. Did anyway. Not sure about the present.

If I understand correctly the crime that these Chinese prisoners committed is the crime of practicing Christianity.

Beyond the regulations being null and bulk shipping being a minor input, you gotta look at total compensation expense. wages can be way cheaper overseas eventhough they have gradually increased in a number of foreign countries in spurts over the last couple decades. But beyond that when operating overseas you don't have the total tax and payroll burdens, insurance costs and most importantly the legacy costs (at least outside of europe). i shutdown a large percentage of facilities for a fairly big manufacturing operation with plants on west coast, in new york and in this state for my last employer. they could ship a raw food product into mexico and get a finished consumer product back and into the supply chain for cheaper than ever produce it here. legacy insurance and retirement costs were the primary driver and continue to be a big factor in some industries and for specific employers that have been around for any length of time. unless commitments to retirees are going to be thrown by the wayside (which a number of unions have agreed to in recent years to keep current work force intact) and consumers are willing to pay more for goods and/or the government becomes highly involved in picking winners/losers or national security required production, i dont see alot of generic manufacturers returning.