It is actually quite economical to make software in the states, one of the reasons being our relatively sane immigration policy. But it wouldn't take much xenophobia to make china look good. America also can't sit on its hands and remain competitive; its a constant battle and we have to continuously adapt and tweek our policies to remain #1.
Disclosure: I'm an American who has worked for Microsoft in Beijing for 7+ years.
Disclosure: I'm an American who has worked for Microsoft in Beijing for 7+ years.