The Japanese hit a similar wall with fixed supply chains. With all technology there is a limit on productivity. After the use of cheap labor come: logistics, capital efficiency, resource costs, management efficiency, distribution and energy costs among others.
1/
The US has many advantages, penetration of MIS technology, cheapest energy supply outside lesser developed oil producers, better logistics, extremely efficient capital allocation, less corruption(which acts as a barrier and tax). In the end, freer markets are more efficient.
2/
The Chinese SOE system relies heavily on subsidized debt. The Chinese due to different accounting rules and promises similar to sovereign guarantees have convinced the Western capital markets to invest very low cost capital in China.
3/
Capital is also directly subsidized by extraordinarily high effective tax rates in China. Effective sovereign guarantees through the State Asset Committee will keep this working along as they do not run out of cash. Their SOEs and government are carried as overhead.
/end

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