Moreover, in many European and American countries, the economic development conditions are superior and the traffic conditions are very convenient. Why not set up the factory in your own field and overseas? I think the reason is simple. First of all, the factory is located overseas and close to the sales market, which is rich in market resources, and people's demand for products will bring more benefits. Secondly, overseas development can avoid tax, just like if it is produced in China, it needs to collect a lot of taxes to transport it abroad, and if it is produced and sold locally, it can reduce the payment of customs duties.
However, sometimes foreign countries need a lot of main raw materials. If the raw materials are imported to China for production, and then the produced products are exported, the round-trip freight cost will be higher and some tariffs will be generated. Therefore, it is profitable for some European and American countries to set up factories overseas. If they are in developing countries, they can make full use of local cheap labor, land and preferential policies.
Of course, China is also rich in many resources. If we can make good use of them, it will bring a lot of wealth. If you set up a factory in developed countries, you can learn from others' unique technology, and it is easier to produce products that suit you according to local culture and needs. It can also promote cultural exchanges and mutual learning in various fields, and it can also transfer production pollution to other places, thus protecting the ecological environment in its own field. So many big European and American companies want to set up their factories overseas.