Good grief. Is that why China is losing all those manufacturing jobs?
A'hem. Could it be that reflects precisely the introduction of Western manufacturing into China? And a real displacement effect is occurring. The new technology is not getting made here. Who is making all the newest, latest generation cell phones? The new LCD screens? The new plasma screens? The guts of all the latest-generation PC's and laptops? And servers? Switches? Circuit boards? Even semiconductors now.
And of course, there is the 'buggy-whip' industry they are taking over too... Who is making all those auto parts for new cars? GM wants to shift $10 billion a year over there... h'mmmm.