Domestic competition starts from a higher cost basis with all the government costs. There is less incentive to improve. You would deny people access to inexpensive goods in order to preserve the high taxes and stifling and totalitarian regulations. Are you really a believer in the Total State?
I would argue the price differential between the same good produced in China and the USA is really quite marginal and almost all of it goes to the international stock holders.
Labor is really as a small part of the equation, as are taxes.
The myth is that made in the USA is prohibitively expensive and it is just that, a myth. I agree that regulations are a hindrance and unions can be a problem but union membership is at an all time low. 10% for manufacturing.