The reason China Product Offers

Had a chat with my friends importers of goods from china bit more I came to know some idea why the products can be categorized china products are very cheap compared to similar products from other countries.Indeed, many early china products initially underestimated in terms of quality but also a lot actual china products are high quality spec or quality in accordance with international standards.
As for some reason could cheap china products are:
1.endorsement government
There are some specific areas in which have china production potential is good, then the government will make policy and ease of permitting, even for long periods of the first year of production of the factory free government taxes and even sometimes to subsidize the amount of goods produced per plant was around 10 percent, for example make charge a capital glass material prices and production costs Rp 1000 then every glass production by the government they would subsidy Rp100, to eventually they can sell their product at a price Rp1000 just beginning and already profitable.
made-in-china
Product products cheap china which he said would inevitably overwhelm Indonesia, more than 30% of the products on display at the product online shop like satupasar.com, Tokopedia, nice shops, and others in domination by product products made in China, the question why this could happen ? one of the causes / factors important cheap Chinese products are the Chinese government's own conduct PEG currency so far below their fair value (compared to other currencies).
As a result, Chinese products can be cheaper in atificial. When China's currency is released to the market mechanism, prices of Chinese goods will go up significantly.
If only the government of Indonesia posted PEG 15,000 rupiah per dollar, Indonesian products will certainly be very cheap in foreign countries. But, when it's done, we consumers are harmed, awry ...
Problem rayon and rattan raw materials and overhead, it shows China's industry more efficient. Cheaper labor and abundant (nearly a billion people in China are still poor demographic group). But we are certainly not going to treat our workers like in China, despite being almost almost workers in Indonesia have started is not rewarded with the emergence of many demonstrations that led to the UMR / MSE at the end to their welfare.
When the government renegotiate ACFTA already on scroll, which harmed consumers Indonesia precisely because they have to buy more expensive due to the inefficiency of industrialization by Indonesia itself-who are now asking for protection. Government can and should help the domestic industry, but do not harm consumers Indonesia itself is a tough choice for the government.
The attitude of the government which likes to pamper guests with various industry players will never make them self-sufficient, I believe, a lot of young entrepreneurs and creative Indonesia brave enough to play in a more open market for the fight against product products from China, but the question is when?
Notes: PEG:
Mem-peg or tie a country's currency into another country's currency, as against dolar. because linked to the dollar is to make money is stable (unstable economy) because the fixed currency value, judging from trading currencies international.Karena it should on the hook internationally recognized currency, by itself at the moment is the U.S. dollar, because half of the value of world trade is in the hands U.S.. Many countries tie their currency to the currency many panegara strong in international trade, thus when one of the currencies that on the hook fall, for example, the U.S. dollar fell, while others are not, then the associated currency will fall but little, so it does not disrupt the country's economy.
2. sell products with different quality
An importer when they want a product in china menbeli he also indicated 10 products lined up together and at first glance is the same quality goods, such as a glass bottle, but the bottle will be compiled with increment 100 rupiah to 200 rupiah and the bottle the next ten to 1,000 rupiah, the same quality at a glance but when in the grasp new feel different thickness and quality of the bottle will be different from each other.Even when the buyer is asking for 50 rupiahpun could he sangupi orderan origin and materials within their many such cheap prices.
3. How to calculate capital konteiner system
A buyer in china never surprised when offered 10 konteiner underwear with price perlusin only a thousand dollars only, he too was confused because he had calculated the cost of materials and production of underwear with quality like that at least six thousand dollars and the postage is calculated and then the fall ticket to indonesia prices panties only fifteen hundred dollars, and he marketed to wholesalers to five thousand he had profit and considered a bargain.
After he asked what can be cheap, people explain it rose china production costs and materials panties perlusin about six thousand dollars namum he calculated based on the total capital konteiner, eg he spend 100million for 20 konteiner production panties, when she can sell pants in 10 konteiner with the price of 100 million for a 10 second konteiner he could sell only 30 million and a profit of 30 million even though he was actually worth konterner capital of 50 million.Then once finished it will production panties again with a new model.
4.Employee loyal
Almost nothing is said in china demo to smooth production process and the relationship between employers and employees in the government stacking properly and mutual benefit.