China’s soy crushing industry began to take off in the 1990s When China first started to import soybean meal, it caused a decline in profit margins for domestic soy processors “In 1999, to address these problems, officials moved to encourage imports of soybeans for processing in China by restoring the VAT on imported soybean meal .
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If an automated machine can produce 1,000 of the same units in an hour, and the only labor is the machine's one operator, the the unit labor cost of each fixture is 1/1,000th of an hour's total compensation costs When labor's contribution to production costs drop to near-zero, there's no labor arbitrage left to make China a low-cost producer
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