You're assuming that wages determines the final price. In the US, about 2/3's of the total cost of production is due to labor costs. True, that faction is much lower in many foreign countries, but the more true measure is the capital stock to output ratio. Third World countries are implementing the latest technology in their production processes while we continue to use plants built in the 1890's. We need to allow business to modernize to improve that capital stock ratio. If they produce X units using $4/hr labor, but we produce 6X using $20/hr labor, we still win the war.
You can fix the problem...you just can't do it with protective trade policies. They only mask the problem. In the US, it calls for tax policies to fix it.