> [If] you have to decide on a degree, would you go to do factory-related work, knowing that companies are moving oversees as soon as they can
This is a case of which came first: the chicken or the egg? One industry that seems to have rebounded significantly is computer science. In 2003, after the bubble burst, few were pursuing CS. A huge insatiable demand followed afterwards mostly from the emergence of Google, and people started pursuing CS in hordes once again. And today, companies still have an insatiable appetite, and pursuit of employees has encouraged companies to go abroad once more.
In your argument of subsidization, cheap labor, laxed regulation being the culprits of job loss, you are ignoring the friction of traveling abroad and the loss of legal power that comes with outsourcing. There are many advantages and disadvantages to outsourcing. The end result once it all sums up is you get a different product, and a different business. These are not easy things to accept, no matter how much money you save.
And as for your suggestion of a solution, current events have thought me that you swing your strengths in ways where the enemy longs for what you and ignores the advantages they have. Industrial China makes us feel we are weak because our costs are high. And China feels weak because we have the knowledge and technicality to achieve more than what they have. Let's stick to what makes us unique and swing that strength in ways that others feel weak.