Why can't the U.S.government see that China cannot be competed with?

...on average I thing they pay their citizens 10-15 yuan a day.that would be about a dollar or two in American dollars.How come our government wouldn't or couldn't see that they are burying our ability to manufacture?They must of known jobs would be lost?Why would they do it if they knew the U.S.A. would suffer?Are we now destined to be a DOLLAR STORE NATION?