Who Has been Benefiting Most from Making Products in China?

China is not the cause of America’s downfall.

As we all know, many of big American corporations have moved their manufacturing operations to China. Who has been the ultimate beneficiary?: the low wage Chinese workers?; MNCs?

The U.S. based corporations have profited most from Chinese based production.

MNCs are seeking the maximum profit. They are looking for savings more than ever in an environment of razor thin profits.

Of course, global wage arbitrage issue has played a part. The Chinese workers’ wage is lower than that in the U.S.

Yet, who let the outsouring happen in the first place? The U.S. congress have given the U.S. platform companies special tax treatment.

It is necessary to look at what has been going on before blaming China for its currency manipulation and trade surplus.