CHINA TOWARDS CAPITALIST NATION

China is fast growing as a capitalist nation. The produce from china is catching up the global market. This is achieved by reduced selling price for the produce from China. But there is a catch; it is estimated that for most of the Chinese product's selling price to cost price ratio does not do justice to China. But then there should be a logical explanation which should reverse the effect. This is achieved by deliberately keeping currency value well below its actual value. By this they succeed in foreign investment to very large extend and money laundering. So if they sell products with huge loss they can make huge gains with money laundering and foreign investment. The ladder to success is well planned and we can soon expect a capitalist China.

For example we can take the case of ordinary electric bulb. Here the bulb has got a cap made of cement which holds the glass portion of the bulb and is pushed against holder. Most of the electric bulb manufacturing companies buys cap from third party. In India we have lot of factories for manufacturing this cap. Now china is manufacturing similar part and is available in market with rates half to the existing cap. So now the bulb manufacturing companies buys this even though its life is compromised. So this is compelling many if the cap manufacturing companies to shut down. Do you think they can compete and sustain in the market when some one comes up with a product without aiming profit. This is a clear cut strategy to become a capitalist nation. What will happen when all the cap manufacturing company shuts down???

Similar situation happened in Africa when Indian Motor Cycle manufacturing company, planned to export their two wheeler in Africa. China came up with a motor cycle priced so low that these companies were compelled to withdraw. They say the price of the motor cycle is equal to the price of all the steel parts used in that motor cycle. So do you think China has turned nuts to quote a price like that. what not if you buy a PC, Mobile, Gadgets, most of the parts are Chinese produce. Dealers are inclined to stock Chinese products because they earn huge amount as profit when they sell a Chinese produce. This is a clear cut strategy to become a capitalist nation. Don't you think its high time to quit Chinese products?????