there was a planet money podcast a few weeks back about manufacturing in 'merica. very similar story.. simple technology (auto parts), moving from america to oversees just to stay afloat. they could either change where they manufacture, or let their business fail. when faced by politicians with the question "what can we do to keep your product made in america?", the answer was pretty clear - even with subsidies or breaks, it's inevitable the product will be made somewhere else.
my question is... what happens when machines replace the cheap labor china depends on?