I read a good article not long ago, It basically said that manufacturing standards in China were capable of being amongst the best in the world. but the reason they use cheap materials, and thereby a cheap product, is because there's a market for it.
The article concluded saying that if the worldwide need for cheap products ever dried up, China would simply go upmarket.
I race in the Motolite class, which has evolved from a class called "Buckets" The idea was based around small commuter bikes, 100cc 2 strokes, 150cc 4st twins or 175cc 4st singles. The evolution came about because parts are getting harder to find.
Enter the Jianshe. They make a brand new Honda XL 175 copy, that can be had for not a lot of money. the quality is fine, and there are two running in the front of our class, one in a highly modified CB125 frame (Marvic wheels, Showa shocks and forks, Brembo Brakes), and the other in an RS125 chassis.