How can Chinese companies ship products to the US cheaper than it costs to ship the same items across town?

Question

How can Chinese companies ship products to the US cheaper than it costs to ship the same items across town?

In: Economics

Answer 1

China is classified as a “transitional” country by the Universal Postal Union (UPU), allowing it to benefit from lower rates (dirt cheap) for sending mail to developed countries such as the United States. Consequently, shipping costs from China to the US are lower than what Americans pay for similar domestic deliveries through our own postal service.