keep domestic wages low + sell to rich countries = profit!

If you do not buy your domestic products and instead export them to richer countries, you can underpay your workers and generate a surplus.

This means you don’t need to optimize employee pay and production. Your employees stay poorer, and are thus more desperate and less feisty, and have little buying power, but they are not your customers, richer people abroad are (Europe, America, etc.).

You just run the arbitrage of it costing you less to produce a good than competition, because you underpay workers and do not allow them to benefit from their productivity, i.e., get higher wages.

Sounds like Marx’s nightmare!

🔗 China as an absolute advantage economy – Yasheng Huang