No, as someone in the western side of product development things. The problem is studied in the standard MBA course for Strategy, without even China mentioned.

First-mover advantage, which comes from R&D into new markets is short lived no matter what. It is critical for firms that hit new ground to find ways to continue to grow their position and market as soon as they can. Copy-cat firms always always come, even big western megacorps love to come in and push out the little western corps, this is typically what is taught in said MBA class. Depending on the market, making newer products that are cheaper is absolutely something a firm must evaluate if there is a demand for it that can be a position and a threat to them.

It's simply the song and dance of the business lifecycle. It's one of the many reasons why 90% of startups fail.