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Good point, with a caveat. The vast majority of aforementioned demand on China is terrible quality. That doesn't mean that the only reason Chinese trash manufacture exists is because of foreign contracts. In fact, I believe very few of them were actually 'asked to make trash' by way of making it as cheaply as possible.
I am willing to stake that nobody, not even American businessmen, paid those manufacturers to create ten thousand seller pages on Amazon and the like with randomly generated six character names.
And things tailored for Europe that are produced in any other country are miles better than the slave colonies of Guangdong Province. Things made in: England, Scotland, France, Belgium, Italy, Switzerland, Finland, Norway, Germany, USA, Canada, Vietnam, South Korea, Japan, Taiwan, Nepal, even Malaysia and Singapore.
I don't think we're contradicting each other. Sometimes the manufacturer themselves (or other Chinese entities) will be the ones creating the spec.
It also makes sense that the trash products, which compete exclusively on price, will mostly be coming from the area able to manufacture products for the lowest price. But that doesn't mean they aren't also able to manufacture higher quality things when requested to.