Europe's minimum wages are much higher in comparison[3].
[1]https://en.wikipedia.org/wiki/Minimum_wage_in_China
[2]https://www.india-briefing.com/news/guide-minimum-wage-india...
[3]https://en.wikipedia.org/wiki/List_of_European_countries_by_...
https://topsourceworldwide.com/international-salaries/
note that China is 40% of salary as a payroll tax, which tops the list.
What you term "socialistic" countries handle government services via taxes more than levies on employers.
It looks like the employer cost in China is 40.92%[0], while the highest percentage in Europe is 32.4% in Italy, and Switzerland imposes only 9.5%.
I just checked job postings in Bulgaria(the poorest EU country) and $11k is just a bit above entry level salary for unskilled uneducated manufacturing workers. It's higher with taxes, experience, etc. and there's a lot of better options at that level.
And the truth is even if you can find cheap employees in Albania, Bulgaria, Belarus, Macedonia, infrastructure is not there and investment wouldn't make much sense because there's not a lot of people here that are okay with such low wages.