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Wherever you are in the world, you won't have to look hard for somebody using an iPhone
So you might think then that because the iPhone is just about everywhere Apple has facilities
Turning out iPhones all over the world
But the truth is that most of them are assembled in just one country China
And this isn't just true for Apple gadgets
I can virtually guarantee that if you take a closer look at any of the mass-produced gizmos in your home
You'll find at least some parts of it that were made or assembled in China
But why is China such a powerhouse for electronics manufacturing?
many people assume that it's because China has a huge and inexpensive labor force and
There's definitely some truth to this
Not only is China the world's most populated country
But it has lower minimum wages than much of the Western world in Shenzhen one of the world's largest high-tech
Manufacturing hubs the minimum wage is less than three US dollars per hour
But a large pool of cheap labor is far from the only reason that China is attractive to tech companies back in the
1970s the Chinese government became interested in moving away from strict central planning and
Toward opening up its economy to outside investment
One part of this was designating the aforementioned Shenzhen as a special economic zone which encouraged
foreign private businesses to set up shop in the area through tax breaks and
relative freedom from Beijing's regulations China was especially interested in having these companies manufacture exports
This strategy ended up proving very attractive for foreign firms and today Shenzhen is one of the world's busiest
As many of the companies who put down roots there ended up building
massive factories that can very quickly scale production if there's a huge contract to be fulfilled like right before a new iPhone would hit the
market and remember that in addition to factories and laborers to work the assembly line you also need
Engineers to oversee them and China has a massive number of engineers that can provide middle management way more than countries like the u.s.
furthermore because of the sheer
Scope of these facilities China can offer supply chain advantages lots of these factories focus on custom fabrication
So everything from plastic injection for keyboards to making sure that a screw is the right shape and the right size
This means that because they don't have to wait around for a part to arrive from the other side of the world
China's manufacturers can respond quickly to customer demands or 11th hour design changes to top it all off
Many Chinese manufacturers aren't focusing just on the export market anymore
Folks who live in China are spending more on consumer goods than they ever have before
Including electronics and with 1.4 billion potential customers right in their backyard
Many of these companies are trying to expand their capacity even more to tap into the wallets of Chinese citizens
Of course, this model is largely built on maximum efficiency
which has led to a lot of controversy over the years about things like
environmental standards and pollution wages company policies regarding attendance and interactions with co-workers
forced relocation to often cramped on-campus living quarters a need to be available at a moment's notice and even
Accusations of forced labor and these have led many observers to call out companies who they perceive to be using something akin to
sweatshop labor
but
The fact that demand is so high for electronics makes this a problem with no immediately obvious answers
Especially since consumers seem to be finding it very difficult to vote with their wallets so to speak
Many things that might have been considered
Frivolous gadgets ten years ago like smartphones are quickly becoming necessities of modern life and last time I checked
none of those are made in the USA by middle-class workers making
union wages
So sound off in the comments with your opinions and let us know your ideas
And also let us know if you'd like to see more videos like this one about the forces that drive the technology industry
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