My son has to buy commodities for his business in China. He recently spent two weeks there for an international show and to visit factories and his contacts. If you saw the "factories", you would understand why their costs are so low. Their manufacturing abilities are in many cases, years behind us and the people work for peanuts. There are so many people there that need jobs, that they are willing to work for very little. Their living conditions which are normal to them, would be the poverty level here. They have blocks of buildings the size of our garages that are their businesses.
Since his trip, I have a much better understanding how the economy works concerning Chinese imports. Everybody tries to survive any way they can.