We can face this problem either by imposing import taxes on Chinese goods and protecting our factories which have smaller scale of production and cannot compete. Alternatively we can turn our small scale factories towards the high-end market. This high-end market is available in China as well. It seems to me that we must allow Chinese goods to enter our low-end market but balance this by capturing the high-end market in China. Our workers will be doubly benefited from such policy. They will get cheap standardized goods from China and also employment in the manufacture of high-end goods for export to that country.
