I finally got around to finishing this book (Economist's best book of 2009). Most interesting was the claim that Chinese manufacturers were often willing to make deals initially at or below cost with big American companies like Wal-mart, using the initial deal to get access to product designs, but, once they had the designs, they'd demand much higher prices to continue manufacturing.
Essentially, importers and retailers overlooked that counterfeiting of their product designs was going to be subsidizing the initial deal, in part because US executives often had strong short-term incentives in their compensation, so the initial savings would yield big bonuses in the first couple years. But the terms of the initial deal didn't last. US companies were surprised to find their costs rising steeply but often found themselves stuck and unable to switch without taking even larger losses.
Unfortunately, the book's discussion is all anecdotal, and attempts I've seen at large scale studies on the long-term profitability of offshoring are mixed. However, there does seem to be a trend to move some manufacturing back to the US because of a failure to see lower long-term costs from offshoring it, see, eg, http://economix.blogs.nytimes.com/2013/09/23/more-manufacturing-coming-back-to-the-u-s/