A great dive into the mechanics of it here. Basically, western economies became financialized and investors would rather invest in low risk ventures like software startups rather than factories and industry. On the other hand, In China, the state sector drives industrial development instead of markets. This created a dynamic where western companies would leverage subsidized industry in China and offload the costs for manufacturing while focusing on developing digital and service economies in the west.
A great dive into the mechanics of it here. Basically, western economies became financialized and investors would rather invest in low risk ventures like software startups rather than factories and industry. On the other hand, In China, the state sector drives industrial development instead of markets. This created a dynamic where western companies would leverage subsidized industry in China and offload the costs for manufacturing while focusing on developing digital and service economies in the west.