It's still relatively cheap compared to the U.S. or developed European countries.
That is a problem of the US (and the EU), not China. The catchword "developed" of the so-called developed world is just to cover up their own mistakes and misgivings. If you've looked in (and at) Shanghai, you'd notice the meaning of "developed," what is not in the so-called West. Or, in a far inside Chinese city of a million or so.
The word cheap means what you can buy for the money you earn, and/or the value of the buying power of the currency, not GDP or some other terms coined by the US, EU or UK banking elite. And, also what the country gives you back, whatever the current gov't. There are two countries in the world with more than 1.4 billion inhabitants each, that develop so fast, none of the so-called West can catch up. They are also taking over the space, one has a space station already, the other will. The "West" would do anything to build a rift between those two countries, but the people and the governments there won't fall for that.
India is considered the largest democracy in the world, with more than 970 million voters. The general election will go on for 44 days, and they vote electronically. That's more than all the population of UK, EU, and all countries of North America!
Once, Tata was not allowed to have a shop by the British colonial powers (or bandits) in India, but today, Tata is Europe's leading steel producer! The old British Steel was rebranded as Tata Steel in 2010!
ARM was sold to Softbank group of Japan, and the Arm China was sold by SoftBank group to the Chinese, Arm China had publicly declared the independence from the its British "parent" in 2021. Now, even Arm China has another competitor in China, who'd design their own chips.
Cheap labour is just a catchword of the "West" to cover its misgivings.