They are fairly efficient but we used to be efficient too. We simply cannot compete on cost because wages are so low there. Even if we had 100% automation we could not do it.

Let me put it another way. It is literally cheaper to ship basic materials like wood to China and have them send us back popsicle sticks. Does that sound like a cutting-edge efficiency problem, or is it a wage problem?? The same can be said about all kinds of things from food to pig iron. We're not talking about tech in any sense. The US mastered every single industry it sent to China with great efficiency, but the exchange rate situation and low wages there make it very difficult for a US company to compete.

Also, China protects its markets much better than we do. In order to sell in China you have to set up a 51% Chinese-owned outfit just to do that. Meanwhile they dump all their products on the world market with very few reciprocal relationships. Imagine how different things would be if we required Chinese companies to do the 51% US-owned franchise thing here. We could even require them to build factories here. Of course, there is no point doing that. If they did it, the goods would be just as expensive as 100% American companies. That's why we don't bother. They on the other hand do it mainly to swipe whatever knowledge they can from foreign companies. I've seen many accounts of this from US companies. You can get the Chinese to make lots of things, but if you send your design there then you risk knockoffs putting you out of business in only a few years.