How can a mainland Chinese company ship a product overnight to the US (Often with free shipping) while a similar parcel & product class from Canada usually takes nearly 2 weeks to make a shorter trip?

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How can a mainland Chinese company ship a product overnight to the US (Often with free shipping) while a similar parcel & product class from Canada usually takes nearly 2 weeks to make a shorter trip?

In: Economics

5 Answers

Anonymous 0 Comments

China’s government heavily subsidizes shipping of goods to make their products more attractive, more affordable, more attainable for Americans. They know Americans won’t want to wait 3 weeks for an iPhone case or pay twice as much to ship it as the item costs. By subsidizing the shipping, it allows companies to sell directly to customers, growing their business, increasing economic output, employing more workers, etc.

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