China is the factory of the world. A major chunk of every manufactured item that is being used today - either fully or partly is Made in China. China has been able to manufacture almost every item at a fraction of the cost as compared to America. The economics of scale, favorable government policies, low cost of labor etc. has made this possible. In the year 2005 China exported some U.S.$350 Billion worth of manufactured goods to the USA alone and U.S.$700 Billion worth of goods overall. China is an industrial power house. While the value of exports from China to the US was U.S.$350 Billion in 2005 the cumulative value of these goods when it ultimately reached the consumers was estimated to be in the range of U.S.$1200 billion. Obviously these goods are being retailed at a substantial mark up to consumers. A U.S.$850 billion profit is surely substantial. One Classic example of ...