Eliminating competition on the labor side of the market is also different, because while it hurts companies, it also makes employees be in higher demand. That's also a relevant difference here.
So, your analogy is just a poor one...
But while I'm at it, you'll notice that for the kinds of business that are easily shipped over seas (where the government regulations don't apply) and you can be outcompeted by people using child labor and paying below minimum wage (another case of government regulation) that did happen to an extent, see textile manufacturing for instance.