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The China Price Project provides the first comprehensive analysis of each of the eight major drivers of the competitive advantage of Chinese manufacturers.  The results are startling and should be useful to business executives, policy makers, labor leaders, consumers, and anyone concerned about the loss of U.S. manufacturing jobs to China.

Abstract of China Price Project Report

Chinese manufacturers have the capability to significantly undercut prices offered by foreign competitors over a wide range of products.   Today, as a result of the “China Price,” China has captured over 70% of the world’s market share for DVDs and toys, more than half for bikes, cameras, shoes, and telephones; and more than a third for air conditioners, color TVs, computer monitors, luggage, and microwave ovens.  It also has established dominant market positions in everything from furniture, refrigerators and washing machines to jeans and underwear. 

This report examines the eight major economic drivers of the China Price and provides estimates of their relative contributions to China’s manufacturing competitive advantage.   Lower labor costs account for 39% of the China Price advantage.  A highly efficient form of production known as “industrial network clustering” together with catalytic Foreign Direct Investment add another 16% and 3%, respectively.  The remainder of the China Price advantage is driven by more mercantilist elements.  Export subsides account for 17% of the advantage, an undervalued currency adds 11%, counterfeiting and piracy contribute 9%, and together, lax environmental and worker health and safety regulatory regimes add another 5%. Implications for management strategy and public policy are noted within the context of the “flight or fight” choice facing manufacturing enterprises seeking to compete with China.

The Coming China Wars is now on the bookshelves!  Here's what some experts are saying about this essential book:

"Peter Navarro has captured the breadth of areas where China and the United States have fundamental conflicts of business, economic and strategic interests.  He puts this into a global context demonstrating where China's current development course can lead to conflict.  His recommendations for nations to coalesce to respond to the challenges posed by China are practical.  This book should be in the hands of every businessperson, economist and policy-maker."

–Dr. Larry M. Wortzel, Chairman, US-China Economic and Security Review Commission


"The Coming China Wars is a gripping, fact-filled account of the dark side of China's rise that will be of interest to anyone interested in this complex and fascinating country. Navarro makes no pretense toward searching for the middle ground in the China debate. He issues a call to arms for China and the rest of the world to act now to address the country's mounting problems–pollution, public health, intellectual property piracy, resource scarcity and more–or risk both serious instability within China and military conflict between China and other major powers." 

–Elizabeth C. Economy, C.V. Starr Senior Fellow and Director of Asia Studies, Council on Foreign Relations


"What Al Gore does for climate change, Peter Navarro does for China. This book will hit you right between the eyes. A gargantuan wake-up call." 

–Stuart L. Hart, S.C. Johnson Chair of Sustainable Global Enterprise, Cornell University, Author of "Capitalism at the Crossroads"


You can buy this book now on Amazon.com by clicking on the book cover below.  This is a "must read" for everyone concerned about our economic future!

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