Is China or Saudi Arabia the Cheapest Place to Buy Computers, etc.?

I do not understand how they are made in mainland China, but are cheaper away from where they are made.

Tax.

I bought a new HP Pavilion dm1 laptop in Canada and brought it to China with me. I paid about 2/3 what it costs in China. Guess where it's made...

In fact, when I moved to China, 95% of the stuff in my luggage was 'coming home'.