Honestly, this is strongly misleading.
Chinese goods are not primarily cheap because they are subsidised by communists, or because of lax environmental regulations, or because of prisoner labor-- the primary reason (and its not even close) are low wage levels. Chinese manufacturing pays an average $25k/year ($15k without adjusting for purchasing parity!!) for a 49h week. No western industrialized country even wants to compete with that.
You are very correct that this is not gonna last forever though, because wages are rising in China, too, which will probably lead to a bunch of manufacturing moving to another low-wage country (maybe India, or even Africa in the future).
