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chithanh | 3 months ago

> It's their citizens who sacrifice to make solar power cheap enough.

No. Manufacturing labor cost in China is not cheap. In fact since 2012 or so, it is more expensive than in most of Asia. Companies who want cheap labor look elsewhere.

https://www.economist.com/business/2023/02/20/global-firms-a... (Archive link: https://archive.fo/tdhXJ )

China is also the only major economy where wages have increased at the same rate as GDP in the last 40 or so years.

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adrianN|3 months ago

Solar panel construction is very easy to automate, I don’t think labor is a big driver of cost.

myrmidon|3 months ago

Labor is always a big driver of cost, because you need to plan, build, maintain and operate those factories with humans even if fully automated, and a lot of the indirect costs is going to scale with the price of labor, too (local legal representation, transport/logistics, ...)

myrmidon|3 months ago

Median wage in urban China is about $20k/year.

That is objectively dirt-cheap compared to basically all of the west.

Yes, wages might be even cheaper in neighboring countries, but those lag behind in infrastructure, education, political stability, availability of capital and network effects from existing industry (and are thus not a viable alternative to China yet for lots of things).

chithanh|3 months ago

Manufacturing labor cost in China has surpassed parts of Eastern Europe.

I agree that infrastructure, supply chains, political stability, and education are the primary drivers for attracting manufacturing to China.