Of course, some are critical of U.S. projects and jobs being outsourced to China. Why are Chinese companies winning so many huge contracts? It is hard for private industry in America to compete with the bids of Chinese companies on these immense projects. For instance, on the Bay Bridge project, California officials estimate they will save at least $400 million by having much of the work done in China. Though a joint-venture between two U.S. companies won the prime contract for this project, it was written in their bid that they would have to rely on getting fabricated steel from overseas. China is the world’s biggest steel maker, and a Chinese company was selected to provide this steel.

 

The project director for the U.S. joint venture asserted that it is unlikely the U.S. fabrication industry could put a project of this magnitude together, simply because they lack the type of warehouses, equipment, and cash flow the Chinese companies have. China has another advantage over American companies also—its large low-cost work force. Many of the steel workers are earning around $12 per day, working long hours.

 

The Bay Bridge is just one recent example of a multitude of large jobs around the world that have been outsourced to China recently.

 

“On the reputation of showcase projects like Beijing’s Olympic-size airport terminal and the mammoth hydroelectric Three Gorges Dam, Chinese companies have been hired to build copper mines in the Congo, high-speed rail lines in Brazil and huge apartment complexes in Saudi Arabia.” (New York Times)

 

Chinese companies have also won contracts for large jobs in New York City, including renovating the subway system and the Alexander Hamilton Bridge.