Why is this a problem? The Chinese collect taxes from their people so they can sell you things cheaper. Sounds good to me.
For people who will gladly work for $0.20 an hour the alternative to that job is probably starvatation. When that is the situation then I think safety regulations and retirement benefits are always going to take a back seat. What you have in China is what you had in this country a couple of hundred years ago. Like us, the Chinese will grow out of it. It takes time.
Odd that you ignore the last 6000 years of Chinese history and declare that "...[the alternative] is starvation." Since when?
The Chinese have lived very nicely without industry, and without starvation, for far longer than has the USA.
Please cite evidence that supports your claim.