I think I know why the price difference is so large. Take electricity, for example:
European Union about $0.34 per kWh
United States about $0.17 per kWh
China about $0.07 per kWh
In Europe, there is mandatory social and health insurance, as well as high taxes. Governments redistribute a large portion of the wealth generated to care for their citizens. In Europe, there are many regulations, directives, and standards that make everything more expensive.

That is why China is cheaper. I don’t know which approach is correct and sustainable in the long term. But I wouldn't want to live in China.