I've talked with some friends here in europe after seeing that video, and apparently tool and die remains more avaliable here. (Metal casting is impossible nationally though)
I suspect the larger travel distance to China from europe create a market nieche that keep it alive when quick iteration is important. I dont think we succeeded better politically basides that luck. (Trades is frowned opon in the same way)
Locally we have a good prototype industry for cirquitboard design (we work with them regularly), but very few large scale producers. The companies that make electronics nationally often have their own cirquitboard factories for their usecase.
But that doesn't work for new companies trying to create new products. The most common approach is to send the design to China and get a pallet of cirquitboards back fully assembled. (With frankly excellent expert support for any issues discovered in manufacturing)