China went to bed and took a nap and stopped production of everything,” says Michael Carrol, the purchasing manager at Colorado Cyclist, a bike shop in Colorado Springs, Colorado.
During the past few decades, the Chinese economy has featured lower production costs from cheaper labor and raw materials, as well as lower regulatory standards, and China has benefited immensely from these comparative advantages.
Paramount among these reasons is the support of China’s and Taiwan’s governments to build up their manufacturing industries, mass-produce selected products, and increase exports.
We don’t engage in a manufacturing industrial policy in the US,” says Richard Schwinn, the great-grandson of the founder of Schwinn Bicycles and founder of Waterford Precision Cycles, based in Waterford, Wisconsin.