I buy robotics supplies, in person, in ShangHai and ShenZhen, Guangdong Province and the economies realised are through technology and techniques.
Many of the named US companies have their products made in China - often on the same production line! Whether you are vacuum cleaner company selling overpriced robots to the US military or a robot supply shop, they all come from the same places.
Dagu, now selling direct in the USA, is a typical OEM (white label) manufacturer. They make for at least four well known US companies.
As for making things 'cheap' the few pennies, Yuan, cents saved are not worth the effort - the major savings in PCBs is the base material. Buying IC's in the hundreds of thousands is also a good way to get ICs labelled the way you want - even blank - or with the pinout configurations changed.
Even though I am based in VietNam, a sizeable part of my company's income is derived from supplying elevator control boards for elevators (lifts) whose manufacturers has ceased business. All my replacement boards are 'copied' from originals in China.
X-ray machines reveal IC die shapes and the hidden secrets of multilayer boards. Have a PIC with a locked up program in it? No problem - a few wafts of sulphuric or nitric acid fumes will reveal an IC's die and some delicate work under a high-end Japanese microscope will allow the e-fuse protection to be removed and the protection reversed so the program can be read and duplicated.
So you can buy with confidence - the savings, as others have implied, are realised as the Chinese are following the maxim: Fortunes can be made from profits thinner than paper.