I think you’ve, intentionally or not, hit on a critical point that most like to ignore while passively accepting that “China is simply where things are manufactured”. As if that wasn’t the case until about the time the median HN reader was born.
Some will attribute it to the proximity of factories to one another, collaboration between those in adjacent industries, culture, government intentionality, a general lack of enforcement on IP as long as it favors China… but the truth is if China along with every alternative adopted Western environmental and labor laws tomorrow, by mid-2026 there would be factories open in every town and city in the USA and Canada.
The West loves to play holier than thou while paying others to put their negatives on their books. Canada implementing carbon pricing and phasing out coal domestically while simply shipping it to Asia instead is the perfect example. Or banning single use plastic because we were shipping it to countries that claimed they were recycling it and instead dumping it into rivers.
There is no reason why we can’t produce things, aside from the fact that it’s unpalatable and often illegal to have to deal with the realities of manufacturing like toxic effluents and aerosols.
It’s why we tend to stick to manufacturing things that only involve assembling, processing, and welding materials after the bulk of the nastiness has been done overseas.