China beat local manufacturers all over the world at their own game and became the world’s factory in the process. ShutterstockIt’s all crucial to China’s strategy of neo-mercantilism. From these exports, China builds up enormous foreign reserves, which gives the government extra power in monetary and fiscal policies. Nevertheless, China is still able to sneak its way in and take over the market by selling products at dumping prices. Many assume cheap labor and a large population are what transformed China into the world’s factory.

Source: Forbes March 20, 2018 10:52 UTC