| General > General Technical Chat |
| How do chinese sellers make money |
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| Haenk:
I highly assume sales is subsidized on many levels. E.g. we have certain products we are "asked" not to resell into the chinese market. These products come from a gigantic, state-controlled company and are are sold via a sub-company. Funny thing is, we can pretty much calculate what a raw material price would likely be, the final product costs about half. Go figure. And I assume this is valid for a lot of products. |
| schmitt trigger:
In addition to everything else that has been discussed, I also believe that the Chinese take a long term profit view. They are willing to work very, very hard for minimum-to-no-profit, for a sustained period, to weed out the competition. Sort of an economic war of attrition. |
| Kasper:
Do Chinese sellers make money? Does their government and or large corps subsidize them to crush the competition? Reminds me of when Arco entered BC, Canada around the year 2000. Gas prices were cut in half. Many small stations were sold to Arco. They probably couldn't afford to lose money on every sale for as long as the bigger players. Once the little stations were taken over, gas prices went back up. |
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