The cheap labor argument is one that was valid in the '90s and 2000s, but hasn't been valid for quite some time. At this point, especially with regards to elect

The cheap labor argument is one that was valid in the '90s and 2000s, but hasn't been valid for quite some time. At this point, especially with regards to electronics, it's just not possible to assemble some goods outside of China. The supply chain expertise is there. The skilled workers are there. All the tacit knowledge about the issues one encounters with mass production is there. To bring all that knowledge back would take decades, and is beyond the ability of any single firm acting alone. It's a classic collective action problem. Diversification offers a diffuse benefit to everyone, but the costs are borne by the individual firms that put in the effort to train workers, document tacit knowledge, refactor supply chains, etc. As a result, without a central coordinating authority, firms will not diversify, because to do so would be to move away from the Nash equilibrium that incentivizes them to use the cheapest/fastest/most specialized supplier at the cost of diversification.