I know I am talking to a wall but let's try. China makes iPods because we tell them to. We tell them how. If you cannot see that the "developing" part of the iPod is infinitely more valuable than the actual manufacturing, then you won't really "get it."
I know I'm talking to a sack of hair, but let's try.
When a country gives up the vast majority of its basic manufacturing skills to another country, it can then be held hostage by the country that has the manufacturing skill.
Consider: We're outsourcing more and more of our steel production to overseas sources, closing steel plants here in the U.S., and essentially losing our basic heavy industrial base in this area....among others.
Now, when and/or if the time comes that the country(ies) that export our raw steel to us decide to "disagree" with a policy of our government, be it import/export duties, social issues (human rights, freedom of whatever---speech, assembly, etc.), and that country decides to, in an offhand manner, suggest we may not be able to source as much steel as we'd like, what do we do? We've given up the ability to make our own, so we're essentially held hostage by the country with the ability to make it.
Wars have started over less.....but by continually outsourcing our basic manufacturing industrial base....steel, bearings, whatever.....we lose the ability to make it here at home and will forever be held hostage by those with the manufacturing base needed for production of raw goods. How do you make a weapon, plane, warship, if you cannot make the steel sheet or precision bearings or anything else we've lost to outsourcing? You can't, and rest assured, China just loves the fact that more and more of our basic manufacturing industries are essentially closing down in the U.S. and moving to China. Gives China a huge bit of leverage over us. And don't think that down the road, if the situation requires them to pull that card out and play it, they won't.
I really think it's absolutely foolish for this country to lose basic industrial capacity and techniques to another country just to save a buck or two right now.
We cry about having to import so much oil and how the Middle Eastern countries have so much effect over our economy simply by driving up prices on oil or withholding a portion of the supply we need.
Now imagine a country like China restricting our supply of steel or titanium or bearings, to name a few critical goods. We'd grind to a halt in no time...unable to manufacture a single gun or plane or ship.