subject: Is made In China Sustainable? [print this page] Maybe lots of people have heard a human about the product made in China. A man promised his daughter to buy a present for her when he went abroad. However, when the daughter got the present, she found a brand reading Made in China. Obviously, this humor indicates that products made in China are so widespread in the whole world. Since these products occupy a so large part of the world market, have the Chinas corporations got lots of profits? Here is an example: an exported music player sole at the price of 81 dollars while its cost is only 35 dollars and Chinas corporation has to pay 45 dollars patent fee in addition. Thus our profit is only 1 dollar. This is so-called one-dollar profit. From this example, we can see that cheapness is the core feature of the products labeled as made in China. In the fast developing world, is made in China sustainable?
There is no doubt that made in China has already made a great contribution to the world economy. According to an American research, the U.S consumers save about 700 billion dollars a year by buying products made in China. It also promotes Chinas economy and provides jobs to about 100 million people. On the other hand, many foreign companies complain that made in China attacks their domestic products to some degree by being too cheap. Whats more, it causes great damage to our natural resources and ecological environment. We can not continue this cheap productive pattern at the expense of environment and resources. We have to change to strategy of development.
What should we do to change it? First, we should increase export products price and sell them at their true price (cost plus reasonable profit). Second, we need to raise our resources tax rate to keep foreign companies from using our resources at a very low price. Third, our government should issue relative laws as soon as possible and regulate price of domestic productive factors through its domination effects. Consequently, it will cause a markup of our export products and upgrade made in China and then advance our industrial structure and transform the productive pattern of high consumption, high contamination and low-priced exportation. Last but not least, we need to increase our capability of innovation. Only if we master technology at the core can we change into created in China.
