The only reason to ship chicken to China for processing is to process the chicken more cheaply. This is done by cutting corners, avoiding U.S. regulations, and paying very low wages. None of this helps the consumer. The meat-packing industry needs to reform its U.S. operations rather than simply avoiding laws by going overseas.
Chicken should be processed in the United States. It does not make sense to send chickens to China to be processed. Americans have experienced a lot of job losses to industries leaving for places like China. The agriculture industry in the United States has been one of the few bright-spots when it comes to exporting products to other nations. The United States does not need to outsource its chicken processing industry too. Finally, there would likely be some safety concerns raised by processing meat in a country like China.
In my opinion, the mere consideration of having chicken shipped to China for processing is all that is wrong with capitalism. This seems contrary to the interests of public safety and seems like a job that would be better served in close proximity to the end consumer, whether they be U.S., European or Chinese.
Though the US Department of Agriculture has recently allowed four chicken processing plants in China to process chicken that has been raised and slaughtered in US, it is difficult to understand who gains and who loses. Avian influenza and food borne illnesses are frequently reported from China, besides, China is also known to be one of the worst offenders of food safety rules and laws.