This question has bugged me for a while. While in Beijing last week, I shopped at Zara, GAP, and H&M, hoping to find SOMETHING from China to bring home.
I found NOTHING.
Bummed.
I was shocked that a simple $10 tee was $35. Everything was 30-40% MORE than home, why?
TAXES TAXES TAXES
*Chinese tax breaks on exports
(anything Made in China and shipped directly to the US is not taxed).
*Chinese roads-most are toll
(it costs $8 to ship 2kg clothes via Chinese roads and only $2 to ship overseas to US).
*Chinese tariffs on imports (If something is made in China, goes offshore and comes back, 10% tax penalty.)
*The value added tax or VAT is around 17% on clothes and can be as high as 40% on “luxuries” like cosmetics.
I thought I hadn’t been out in a while and maybe my price-meter was off.
But no.
“Made in China” in China doesn’t mean it’s affordable.
https://www.creditwritedowns.com/2011/09/why-made-in-china-costs-more-in-china.html