There is more to this dispute than labor costs. Do American firms have equal access to China's market? Many times, American firms wanting to set up shop in China have to give the Chinese government access to trade secrets. It's alleged that China manipulates its currency value. There is the issue of Chinese firms violating patents and producing counterfeit products. There is the issue of Chinese firms using non-authorized, toxic materials while producing products. The issues are numerous.
Richard Nixon's biggest sin was not Watergate. It was reaching out to and opening China.