Why is manufacturing outsourced to China?

The most common reason for outsource manufacturing is the reduction of cost. American companies outsource manufacturing to China to have their goods assembled, or completely built overseas, at incredibly low costs. Hence, many people consider cutting costs by outsourcing their production to countries like China.

When did outsourcing to China begin?

The outsourcing industry grew rapidly in the 2000s in China by beginning from an “embryonic” scale.

Why did employers start outsourcing?

Companies looked to workers in foreign countries to work in factories due to lower labor costs. Once company owners were confident they could outsource manufacturing functions and shipping costs to get the goods to market decreased, more of them decided to outsource this portion of their business to other countries.

Is China to blame for the decline in manufacturing jobs?

There are roughly 5.1 million fewer American manufacturing jobs now than at the start of 2001. And China is to blame for more than one-third of that loss, says a new report.

Why are so many Chinese companies coming to America?

Beyond the promise of advanced manufacturing, more Chinese companies are coming to America as they face higher costs in China for land and labor, along with tariffs and other trade barriers.

Did China steal American manufacturing jobs?

Yes, it is true that numerous American manufacturing jobs have been shipped overseas to China, thereby leaving American workers jobless and suffering. But China did not steal these jobs. No.

Why do American companies transfer jobs to China?

The standard of living is much lower in China and thus Chinese workers are willing to accept wages far below living wages in America. So corporate America will continue to transfer more and more jobs to China and elsewhere. If we do not address this fundamental economic reality, then we will never solve the problem.