Final answer:
China can efficiently produce labor-intensive goods owing to its abundant low-wage workforce and government policies that favor manufacturing growth.
Step-by-step explanation:
Because China has abundant low-wage workers, it can efficiently produce labor-intensive goods. This is attributable to its immense workforce that includes a considerable number of migrants from rural areas seeking employment in industrialized urban regions. China's economic strategy and government policies have been crucial in developing its manufacturing sector, providing it with a comparative advantage in this area.
The significant rural-to-urban migration has contributed to China's rapid urban growth and its ability to produce large quantities of goods at lower costs. While government capital plays a role in where factories are located, as efficient governments work closely with companies to attract investments, the availability of a large, low-cost labor force is a definitive factor in producing labor-intensive goods.
Examples of labor-intensive goods include textiles, clothing, toys, and small appliances, which are sectors where China has been particularly competitive on the global market. This contrasts with countries like the United States, which exports goods requiring high-skilled labor and technology, such as agricultural products, computers, and aircraft.