Are you under the impression that China hasn't seen salary growth in the past few decades and thus can outcompete them? China's median salary today is a third of the US and China's median salary in tier 1 cities is almost on par in some fields.

There's a limit because it means that these less-developed countries can't leapfrog the Chinese economy while depending solely on Chinese support, but that's a problem for after economic independence and consistent economic growth are achieved.