http://www.epi.org/publication/bp316...arts-industry/
China is subsidizing its manufacturing base. And Chinese banks give a lot of loans at the behest of the government and those numbers are in addition to the subsidies.
What do they gain? Social stability. China is an export nation. It is worth more to China to have its large population working to fill export needs than it is to make a profit on that need.
That is why in the other thread on China's advance, I have provided the unpopular view that China is not going to become a superpower. Although all the other commentors seem to be bullish for China.
And I am not substituting my beliefs for what US consumers want. Did US consumers want dry wall tainted with poison?
http://chinesedrywallcomplaintcenter...ndications.htm Of course not. They wanted the least expensive dry wall possible, dry wall is dry wall after all. Except when it off-gases toxic fumes....
So that Chinese drywall did not give the US consumer a cheap product for $X.
It gave the US consumer a cheap product for $x + the cost of replacement, + medical costs. I imagine that is a tad bit over the cost of getting dry wall from a trusted source in the first place.
You are not always saving money when you go with the lowest bidder. And it is not unreasonable that the government step in to prevent toxic dry way from entering the country.
Even if there are some citizens who would buy it because it is "cheaper."