I'm surprised no one is mentioning the currency issue. The dollar is probably overvalued by at least 50% given our financial condition but because of reserve currency status, we are able to delay this restructuring. Imagine Chinese workers doubling their purchasing power and wealth overnight. This would certainly improve the standard of living there. Of course, all for our imported products woud double in price, too.
Their purchasing power of foreign products would increase, but not of those made in their own country. And I would guess that these migrant workers generally buy try few foreign made products (i.e. made outside China.)