Then explain why capitalism made China its workbench.

China encourages exports and has no recent history of confiscating property owned by foreigners. Combined with cheap labor this makes it a great place to set up sweat shops. If you are selling a good that can be made in a low labor area but you use high cost labor you will be outcompeted and the market wont buy your expensive products so over time all the successful firms make their low skill products in sweatshop zones