It seems to be working well for Apple...

In any case, the biggest car company in Germany is VW, and I wouldn't consider them a "luxury" car manufacturer. And most of the Mittelstand in Germany are companies that are not household names, but are very successful in their particular industrial niches.

Just as every individual is unique in its skills, experience, available resources and location, so is each country. Surely China's cheap workforce cannot be replicated in Europe or the U.S. and China's biggest problem will be their own middle-class which gets richer, so you can clearly see that a cheap workforce is not sustainable in a growing economy.

Can the world replicate Silicon Valley or Hollywood? Maybe, maybe not, but surely a lot of effort is required and there are also cultural issues that makes this hard. Failure is accepted as a sign of progress in Silicon Valley, but in Japan it's unacceptable.

The way to grow is to rely on your core strengths and make your weaknesses obsolete. So for example if companies move to China for cheap labor, then pay engineers to build better robots, a strategy which in the long run can yield better and more efficient factories.