The key to being a net exporter (which is not quite the same as being a "manufacturing powerhouse", but _is_ what China and Germany have in common) is government policies repressing domestic consumption and productivity that is high given the wage structure. As long as your population is forced to consume less than it can produce, chances are you will be able to export the surplus somewhere.
Both Germany and China have such policies, in fact. It means that in both cases consumption (aka "the standard of living" as it's typically measured, for better or for worse) is lower in both than it could be if workers' spending power were allowed to match labor productivity.
Both Germany and China have such policies, in fact. It means that in both cases consumption (aka "the standard of living" as it's typically measured, for better or for worse) is lower in both than it could be if workers' spending power were allowed to match labor productivity.
http://www.financialsense.com/node/5580 is a good read about some of the issues.