One of the companies I visited was Kailing, a manufacturer of brake systems for high-end bicycles, motorcycles and passenger cars.
FORBES: China's Tier 2 and Tier 3 Cities: Part II
Kailing focuses on total cost, which includes engineering overhead and other expenses.
When asked how Kailing combats rising labor costs in China, the chairman explained that labor is only one cost involved in making a product.
Kailing not only makes all of its own components, it has also designed entire brake assemblies that it sells to original equipment manufacturers in China, Italy, the United Kingdom, Spain and India.
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