New Delhi, Jan 9 (NationPress) The significant edge that China holds in the manufacturing industry compared to other nations is not merely a result of economies of scale or the country’s swift adoption of Western technologies. Rather, it stems from the exploitation of labor within a restrictive framework, as highlighted by a recent report.

According to an article featured in The Diplomat, China’s advantage extends beyond efficiency and technology. It is deeply rooted in a labor system designed to minimize costs through lax enforcement, extended working hours, and wage suppression. This creates a structural cost disparity that reflects a different regulatory landscape concerning labor rights and the burdens placed upon workers.

To illustrate this point, the article compares the car production rates between Tesla's factories in the United States and Shanghai.

In 2023, Tesla’s Fremont factory in California employed 20,000 workers and produced approximately 560,000 vehicles, translating to about 28 vehicles per worker annually. In contrast, Tesla’s Shanghai Gigafactory, with a similar workforce, manufactured nearly 1 million vehicles, equating to nearly 50 vehicles per worker each year.

On December 8, 2024, Tesla's Gigafactory in Shanghai celebrated the rollout of its 4 millionth vehicle, marking a significant milestone as the US automaker deepens its engagement in line with China's burgeoning new energy sector, according to a report by Xinhua.

This Shanghai facility, Tesla's first gigafactory outside the US, began construction in January 2019 and produced its inaugural vehicle by December of that same year.

Now, the factory churns out a new vehicle approximately every 30 seconds, contributing to nearly half of Tesla’s global electric vehicle deliveries.

It took over 30 months for the plant to achieve its first 1 million vehicles, while the output surged from 3 million to 4 million in just about 14 months, according to the company.

Serving both the mainland Chinese market and international customers, vehicles from this factory are exported to Europe and the Asia-Pacific region. In October, the Shanghai facility shipped over 35,000 vehicles abroad, marking the highest monthly export volume in two years, as reported by the company.

In February, Tesla's new Megafactory in Shanghai, dedicated to producing energy-storage batteries, commenced operations, marking its second major facility in Shanghai and the first of its kind outside the United States, according to the Xinhua report.