My personal opinion is that the global economy is in a period of equalization. The populations of more countries are reaching education levels that were once exclusive to advanced nations, and it has made their populations competitive in the global labor markets. The United States does not have any sort of edge when it comes to specialization of labor for most jobs. Thus our businesses have no advantages when location is not at a premium. Trying to counter this with political solutions is a futile gesture destined to fail. The key to staying at the economic forefront is innovation. And we have no monopoly on innovation. In fact, China is likely to be the leader in innovation due to the huge numbers of scientists and engineers it is training. One only has to look at the graduate students in the physics, chemistry and engineering departments at U.S. universities to see the disparities in the numbers of Chinese v. American grad students.
I don't see China innovating. This increase in the total number of skilled and educated Chinese has dwarfed us for a long time.
In fact, I believe I read on Forbes' Flipboard last night an article that said that the US has a fraction of the global manufacturing output, and yet what output it does have yields the vast majority of profit.
In short, it stated that we easily have the most profitable manufacturing sector in the world, and as such, workers here in manufacturing yield more to companies' profit lines than anywhere else in the world.
China at this point is the world's low-price-labor-leader. Not innovation. The one thing they could and should capitalize on is their rare-earth monopoly. It would seem to give them an edge against Korea & the US in that department in terms of innovation (from a natural resource standpoint).
Even though they've got a massive amount of educated Chinese, they have been unable to harness that collective brainpower to truly innovate in highly-specialized industry.