[Alex_001]

Overpopulation in China has contributed to high job competition, leaving many people unemployed or underemployed. As a result, many are now willing to work long hours for lower wages just to make ends meet. Culturally, China places a strong emphasis on community and collective effort, valuing group success over individual recognition. This mindset, combined with a deep focus on efficiency, has been a key driver behind China’s success in manufacturing.

Let's see if there's anyone else that can give us more insight from the view of US.

[chii]

The success of their manufacturing has its starts at low wages and long hours, etc as you said. But that is not as true as it used to be, and yet the manufacturing is still growing strong.

The reason is the application of state effort - the profits of this manufacturing is not private, but state owned (even if the factory is private). The state forces the owners of the factory to use the yuan, but keeps the export currency (in USD) - it is how china built up their massive reserves. The state uses this wealth to both build out civilian infrastructure and other forms of capital in a directed way (industrial policy), which also has enormous side benefits to military procurement.

So china's manufacturing power now comes not just from low(er) wages, but from proximity and ease of supply chains. If you needed a commodity XYZ component (like a bolt), you don't need to source it from a faraway place. If you needed a custom component designed, then the factory that would build it and the tooling is down the street.

Lots have been said of silicon valley's proximity benefit to tech startups. The same can be said for china's manufacturing hub(s). For the same reason many other places are unable to replicate silicon valley's success, it is the same with china's manufacturing.