This isn't unique to China, it's just the nature of modern manufacturing. The only reason China stands out is because we offshored our manu there, so it's where we see it happen.

I feel like people forget that the entire purpose of factories/ automation/ modern manufacturing was to divorce human skill from product worth (so that companies wouldn't have to pay workers based on skill). That also means that in the realm of physical goods, "moats" are not maintainable unless you have a manufacturing technique or technology that others don't. Since companies rarely create their own production line machinery, anyone else who can afford the same machines can produce the same products.

The actual "viable strategy for hardware companies" has to be about market penetration; make products that aren't on Amazon, for example, and Amazon can't be used to out-maneuver you. Firearms are a great example of where manufacturing capability does not equal competitiveness; China can absolutely produce any firearm that you can buy in the US, but they don't because other factors (mostly related to regulatory controls) created a moat for manufacturers. Vehicles are another good example. Good luck buying an Avatr car in the US.

But yes, if you plan to make a vacuum, which is just you iterating on what others have done as well, you should probably expect that people are going to trivially iterate on your variant too.