

The Major Source of China’s Economic Competitiveness? It’s Not Labor Prices - wslh
http://www.chinafirstcapital.com/blog/archives/3075

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kevinalexbrown
This misses the point that _the land still costs about the same_ it's just
that the cost is swallowed by the government, not the factory-owner. That is,
the government assumes the opportunity cost of not selling to some other
individual. It's basically saying that China's competitive because they have a
nice system of government subsidies. It would be the same as if the government
gave each company the face-value of the land.

This might explain why individual businesses have an easy time getting up and
running, but it can't alone explain China's success, except on the more
complicated level of how subsidies are good, which isn't really addressed.

