It definitely helps to have more years of education for even the most simple of jobs. This is how productivity in the west can be so high. Since China's manufacturing productivity despite it good infrastructure is lower than the west the explanation for lower output has to fall on some form of education snafu.
Labor is but one component of manufacturing productivity. Capital/Machines and Management Quality are other factors that greatly effect manufacturing productivity. As Chinese wages rise, you'll see higher and higher Chinese labor productivity as factories invest in automation to offset higher wages (this is happening already). Management quality will also rise as more Chinese managers get that western MBA (remember, they've only been at this capitalism thing for 30 odd years). So in short, it's not only the education level of the laborer. Hardly. US and UK primary public education (especially in the inner cities) is nothing to write home about and yet they have high manufacturing productivity for the reasons I gave.
And you're completely wrong about "so much of the wests effort goes into maintaining existing investments made over 100+ years that there is lower ability to expand service area" that I don't even know where to begin.
This is all a joke, right ??? You don't really believe the non-sense you're saying?