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Aug 18, 2011American imports to China are charged a VAT, but the U. S. doesn't have a VAT to charge Chinese imports. On top of this, China's national government policies allow their manufacturers to use trade cheats. For example, there are unbalanced tariffs, such as the 2.5% for a car entering America vs. 25% for a car coming into China.Viewpoint Why is China Cheaper? IndustryWeekAug 18, 2011American imports to China are charged a VAT, but the U. S. doesn't have a VAT to charge Chinese imports. On top of this, China's national government policies allow their manufacturers to use trade cheats. For example, there are unbalanced tariffs, such as the 2.5% for a car entering America vs. 25% for a car coming into China.
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