No it was not a "NO U" thing, I don't play that way. One of the reasons to outsource is the rediculous regulations in the US about exporting hi tech products, the only way around it is to produce in the countries you plan to export to.
You mean dual use restrictions, that kind of stuff? That alone makes little difference. It isn't just technology manufacturing that's being outsourced, rather it's manufacturing of every kind, and for similar reasons. And it does kind of make sense to prevent the Chinese from getting the technology to produce Raptors and modern submarines.
Yes they do push costs down, but Japan's economy has largely been stagnant for the last 20 years, I'm not so sure following their lead would be a good idea. Besides, with the dollar sinking like it is we'll soon enough know what it's like to have a weak currency, and it won't be pretty.
Stagnant in a relative sense insofar as Japan wasn't booming like it was for decades and it had a hiccup in the 90s. But when you control for demographics they've been doing as good or better than the US. Convenient and crappy wordpress link if you don't believe me, not that there would ever be any doubt.
http://www.thoughtofferings.com/2011/04/real-gdp-per-capita-and-myths-about.html
Of course Japan is "only" going to grow maybe 1.5% this year thanks to the underwater Godzilla fart wrecking the entire country but per capita growth the last few quarters in the US has been disappointing too.
And why am I saying this. Economic growth differences are a whole new tangent, and there are several other successful Asian economies to look at (South Korea, Taiwan, Singapore, etc). The point is that the US is pretty much standing around doing nothing while it's industry is getting scrapped.
And about the weak dollar; that's been boosting US manufacturing, doing a bit to close the gaping current account deficit, and working to correct some of the huge global capital flow imbalances that contributed to the current mess.