I'm becoming more and more of the opinion that if the work needing to be done in America were left in the hands of the work ethic of the general american populous.. there would be an economic collapse.

That asside,

Yes their economy's condition allows them to undercut us by a large amount, so american manual laborers are being cut out and have to look for new work.

A long time ago companies decided to remove the working class from the US, and instead employ foreign workers at a considerable proffit. Our super-bloated commercial economy is BASED on that. China is nothing new, it's just a lot more plentiful. It will continue to be so until China moves the entirity of production in-house, and becomes the service provider, and America is forced to do it's own menial work, or buy everything from China. In the end, there will always be work to be done by Americans, since every American needs a place to live, food, clothing, housing etc.. What China -will- do is flood our economy (as it already is) with astronomically cheaper alternatives to products made by major american companies which are already overcharging for them. In the end, America really wins in terms of physical wealth, and China will probably become a bigger world power as well.