Not Just in China . Chinese have better source of funds for offshore projects and they are encouraged to do volume business and compete . Chinese govt is also proactive in the sense that Chinese loan money to weak , poor countries and then using that money they promise to create infrastructure in those countries like building dams , roads , railways . When the Chinese company gets the contract the next thing that they do is to flood a bunch of Chinese into those countries . I have seen Chinese working on road projects in Nigeria at 6 am in the morning . An average Nigerian worker would start work at 9 and pack up by 4 , but these Chinese workers start at 6 and work till 6 PM .
While our Indian govt is considering to sell Shipping corporation , Chinese govt has been actively concentrating on providing cheap shipping options over sea , air to its manufacturers . Chinese lines offer cheaper shipping and faster timings from Africa and Europe . Silk road , buying up ports in small countries are examples of China improving its shipping lines .
The cost difference btwn Indian and Chinese is not much on most low end products but if we calculate with shipping it is substantial for an european country . Without an active ship building industry and shipping lines Indian manufacturers cannot really survive .
The general mindset is to think China manufactures it all at a cheaper price , but what most of us do not realise is that South Korea , Taiwan , Indonesia , Thailand , Vietnam are leaders in many manufacturing industries and even the Chinese are not able to compete with them . So not all is lost for India . We just need a govt capable of understanding the dynamics of an export oriented economy .