There will always be certain costs associated with doing business in the West that don't appear in places like China. The most well known one being worker's rig

There will always be certain costs associated with doing business in the West that don't appear in places like China. The most well known one being worker's rights. Even if you come up with some sort of "nuanced" miracle strategy that can make the west competitive whilst maintaining workers' rights, you probably can't prevent China from copying it and yet again being at an advantage due to labor law differences. One concrete thing I would 100% advocate though, which I guess is an example of a "nuanced" strategy as you alluded to: Gimp / legislate away white-labelling of foreign products and drop shipping-like businesses. These have had a huge "spam" effect on products and consumer's brand-awareness that it'd be so worth it. It's made people unable to discern quality which is a huge win for places like China that at the bottom-end of the price spectrum simply don't have the quality we expect and would usually want to avoid by virtue of paying more.