[tsimionescu]

Actually, a company that accrues a lot of profit could always be outcompeted by one willing to make less profits. Profit is a cost to the company itself, it is only beneficial to shareholders.

On the other hand, it's true that companies with lower costs will tend to outcompete others, so moving to China is sort of dictated by the market.

[AstralStorm]

To a point. You cannot go lower than base cost, and can be made irrelevant by sheer volume.