Have I been to China? No. Spoken to people who have, and they say outside the major cities, it's still like peasant villages. China is a study in contrasts.

As for why they make cheap widgets in China as opposed to here, it's because it's cheaper. Cheaper labor. Low amounts of regulations, both environmental and safety. Cheaper bribes to government officials. List goes on.

Are we developed? Depends. Are we talking East St. Louis, Appalachia here or Silicon Valley I suppose.