As I said before, they will protect the labour in the short term and adapt industry into other things to maintain people's ability to have those three things -- food, housing and entertainment.

Should their manufacturing-based electronics industry ever be threatened as you fear there is absolutely nothing stopping them retooling local economies into more service related things or changing from electronics manufacturing to something else.

If push really comes to shove and you can't fix local conditions through such adaptation or retooling of the local economy they aren't averse to simply having entire towns relocated somewhere else. Remember all those "ghost cities" that the west propagandised about for years? What happened to all the talk about those? They aren't ghost cities anymore. Massive populations were relocated into them out of other areas in order to improve people's conditions. The problems you're raising are things capitalist countries are terrible at handling but they simply won't sit there and allow communities to collapse the way you're envisioning if key businesses suddenly struggle. They will prop up the conditions of the people while they find alternative solutions to ensure conditions don't go down, failing that they will simply take drastic measures to move entire communities.