The shops you're thinking of are less of a sweat shop than, say, Amazon in the US. Theres no good wages, but factory jobs don't really pay well anywhere.

They're mostly just a lot more efficient at scale, with a few plants managing close to the whole worlds supply of random shit. Almost all microwaves by all international brands are made by the same Chinese company, all prismatic LiFePo battery cells come out of one of two factories in China, and so forth. Economy of scale on turbo steroids.

Imagine having to compete with Ford by making cars in a garage. Now imagine Ford as the garage shop vs. these factories.

The sweat shops you're thinking of is stuff like clothes manufacturing in other third world countries than the usual suspect. That shit is nasty - breathing and handling acid with naked skin nasty.