Yep. Exactly.Yes.
What a lot of people don't realize, though, is that a huge mandatory part of the cost when you want top quality is paying for a team of your own people to be on site, watching the manufacturing, at all times.
As far as the Chinese are concerned, if you walk away and allow them to make your product without you looking over their shoulder, you've given them permission to cut all the corners they can as soon as you're out of sight. That's just normal business practice and they think we're weird for not understanding that.
My experience is with folks in electronics but I consider my sources trustworthy. They tell stories of the specified $5 capacitors in their designs being replaced with $0.15 units the second they turn their backs.
And if you have a proprietary product, they will make your orders on the day shift. Then the evening and midnight shifts will continue to turn out product which the Chinese will sell around the world at prices that undercut you.