The golden rule #1: you get what you pay for.
The golden rule #2: you cannot afford to make [censored] if you are paid more than the lowest.
The standard of living in Taiwan is now on par with Korea and Japan (well, some area of Japan), so they cannot afford to make junk. They get to their payscale by making higher end stuff than junk. Your semiconductors chips are most likely made there, the guys that run the Chinese factories most likely started their careers in Taiwan, Singapore, Hong Kong, or Japan before they jump the fence for a pay raise to teach the Chinese how to build stuff. The same for Japan and S Korea, they all start making junks before they become good at it and earned the trust to build better stuff.
I was in Taiwan a few months ago for a factory visit, and the OEM told me that their factories in China are getting expensive that they started moving them back to Taiwan. This is likely because they are starting to make better stuff that pays more, also because a lot of Taiwanese went to China for their new high tech boom. The Chinese want to build better stuff and will pay big bucks to recruit with high pay. The same as US willing to recruit all over the world for ridiculously high salary.
In the last few years I'm starting to see the junks production leaving China and entering Vietnam, Cambodia, Sri Lanka, Pakistan, and India. Chinese labor is getting expensive for those $3 toddler clothes.