End even "if there is a drastic worldwide decline in the demand", it will be rather for the MORE expensive goods made OUTSIDE of China.
But then the profits of making small equipment isn't too small. And the Chinese are catching up on making larger and more expensive stuff too. These days, more and more auto majors are setting up shop in China and India, to make cars there and sell them back to their home countries, mostly Europe at present.
I still believe the only way to stop China is internal political turmoil or a drastic cut in Chinese imports by the internatonal community. Our best bet lies with the former option. Hopefully, it'll be a home-grown democratic revolution. But given the way how the world gave a pat on China's wrist for Tianmen, I am not too hopeful of this happening either.
Oops, I re-read your comment, and therefore withdraw my earlier post to you.