Pricing is done on total package deal...not just labor costs.
It depends on what products we are talking about, but in large part China only beats US manufacturing prices by the single digit percentages. It depends on what. Thats not just talking about labor (which some single mindedly beat to death), but rather a comprehensive price of what gets to the customer....
Got an example of the percentage breakdown of the cost components of a specific item (i.e. labor, materials, shipping, taxes and other government fees etc.)?