You make it sound like the West consciously decided to outsource to China. This is not the case, and the West would not have had the unity to be able to consciously do such a thing.
Simple market dynamics caused this, albeit caused by market manipulation on China's part. China buys US debt, lowering the value of the Chinese dollars to the US dollar, making stuff in China dirt cheap.
Uh, the US government's granting China most-favored-nation trading status was certainly a conscious decision, and China would not be as far along economically if the decision had gone the other way. (Driving a wedge between China and the Soviet Union was the main reason behind the decision IIUC.)
Simple market dynamics caused this, albeit caused by market manipulation on China's part. China buys US debt, lowering the value of the Chinese dollars to the US dollar, making stuff in China dirt cheap.