The Coming China Wars: Where They Will Be Fought and How They Can Be Won, Revised and Expanded Edition

1. The Cheating “China Price” and Weapons of Mass Production

The China Price. These are the three scariest words in U.S. industry. Cut your price at least 30%, or lose your customers. Nearly every manufacturer is vulnerable—from furniture to networking gear. The result: A massive shift in economic power is underway.

—Business Week

The China Price refers to the fact that Chinese manufacturers can dramatically undercut competitor prices over a mind-boggling range of goods. As a result of the China Price, China produces more than 70% of the world’s DVDs and toys; more than half of its bikes, cameras, shoes, and telephones; and more than a third of its air conditioners, color TVs, computer monitors, luggage, and microwave ovens. The country has ...