Everyone has outsourced all their cheap and low-quality manufacturing to China, therefore China is only capable of manufacturing cheap, low quality items. Is this your argument?
My argument is we have not outsourced bombs and sensitive military technology building to china. It is mostly the stuff we can stand to tighten belt on. Even if there is some demand for things like chinese medicine or whatever, its a market effect and not because only china is capable of making this medicine like how only US defense industry can make some of its secretive military tooling.