The same way all predatory pricing has done so in the past. Undercut the other guys industry, leaving you with a virtual monopoly in the end, then raise your prices. Small example. Bought my daughter 2 strollers 3 years ago. Nice one, made in Wash. state. $250. Another nice one made in England for $150. They were one of very few non chinese models. They were better quality, but I tend to look carefully at that, since I'm an engineer. The Chinese "comparable" models were approx 30% cheaper. 3 years pass, had another daughter, and now needed a dual stroller. Guess what, the vaunted English company's strollers are now made in China and the US Co sold off to a conglomerate and is now partially made in China. And guess what, the prices are still outrageous. Now china mkes the low end, the mid level and the high end strollers.
Sure, who cares about strollers? I don't. But I do care about machine tools, high end electronincs, chips, auto parts, furniture, metals, etc etc.
"Sure, who cares about strollers? I don't. But I do care about machine tools, high end electronincs, chips, auto parts, furniture, metals, etc etc."
Exactly!
Any examples where this happened?
And guess what, the prices are still outrageous. Now china mkes the low end, the mid level and the high end strollers.
Prices higher than before? At what level, wholesale or retail?