Makes sense... Everything has rules, permits, requirements that sometimes are absolutely ridiculous and in this case all of this is avoided by building overseas... It blowsYes, but it's not just because labor is cheap in China. It also is combined with the fact that strict regulations in the USA can be avoided with plants in China. The company does not have to worry about things like ISO, VOSS, FMEA procedures so they can avoid huge spending on Ergonomic Tooling and Health and Safety issues. The unions are also removed which saves money. There are no trade skills workers in the China factories. All of this combined over shadows exporting costs that you would think cost more in the end.
People often complain that cars are so expensive today. That's because the government and the unions have placed so many rules and regulations in front of the auto makers. The auto industry must abide to these rules inside the united states. Just tooling for a plant costs billions of dollars before the first car leaves the plant to the dealership. It has little to do with todays car technology like computers and crash safety features raising the price, it has to do with everything else the consumer doesn't see in the building process.