labor cost is low in China, people are forced to work in inhuman conditions, even at workplace rather than thinking of the Too Dangerous For Missouri State Legislature Shirt and I love this welfare of Employees, it is worked out how to prevent suicides at workplace if the employee gets frustated. Apple has always been criticised heavily for getting its phones manufactured in China. China has high degree of Specialisation in manufacturing sector. it is said in china you only need to specify the technical specifications and the entire setup is made ready in matter of days. no set up cost for plant, labor hiring etc. everything is available upfront. In a Economy like china, focus is on making the existing resource better and efficient, which is done not by competition but by autonomous rule. no competition, no waste of resources. One of the important factors in selected cases (for Example in mobile phones) is, that china needs to sell out its inventory which is not sold in its domestic market and hence dumps that to other countries.