I can think of a few reasons in the nature of China devaluing their currency or other countries ignoring pollution, but these seem like illegitimate reasons. They're not a true advantage of China or India, they're perfidious regulatory arbitrage and a failure of US policy to punish cheating or impose the same environmental standards on all manufactured goods sold in the US regardless of country of origin.
So are those the only reasons (to which plausible yet unimplemented solutions exist), or is there something else we have to fix?