I think it is quite clear that outsourcing hurts the local economy in the end.

To quote a recent World Public Opinion on Globalization...

"Support for globalization is remarkably strong throughout the world. The highest levels of support are found in countries with export-oriented economies: China (87%), South Korea (86%) and Israel (82%)."

There is significant concern about the effect of trade on employment, especially in more developed countries.

80% of French respondents believe trade has a negative impact on job security in their country

73% percent think it is also bad for the creation of jobs there.

In the United States, 67% consider trade harmful for U.S. workers' job security & 60% call it detrimental for job creation."

In many countries, the prescence of goods made in china is hard to avoid. In the media we increasingly hear of companies closing their local operations in order to outsource to countries such as china who can offer an undoubtedly cheaper price.

So at this stage Yes I think China has far too much penetration in the world market and too many companies are choosing to outsource to asian countries, including china.