If you are talking specifically of pharma APIs then China did not win on quality but cost. Simple!
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Despite labour being cheaper in India- the other raw material, utilities, logsitics and financing are cheaper in China- undercutting India because of systemic efficiencies.
India’s road to freedom from Chinese API dependence
www.praxisga.com
Before the advent of cheap Chinese APIs, India used to manufacture it mostly in house, and there is a recovery plan in place:
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Besides competing for APIs with Chinese, Indian pharma industry responded and climbed the value chain to become one of the top global manufacturers of formulation drugs:
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The Indian pharmaceutical industry and Chinese API manufacturers have been fighting a very long war, and India was losing its API manufacturing industry to China.
www.news18.com
China does not invent, it only builds & builds to a cost less than anywhere else in the world by bringing cost efficiency and kills off competition. That's why the other posters are right when they say low cost is your only weapon. Can you point out one product that is available outside China for lower and yet the world is flocking to buy it more expensive from China? I can give you the example of France & Rafale that multiple countries are queuing up to buy despite say J-10 from China being cheaper.
Not taking the hard work away from the Chinese, but it is largely because of no other options as the world closed its doors to high tech for China post Tiananmen massacre. The fact that you cannot openly collaborate with the world on military programs (jet engines included) is a mess of your own making.
Especially on jet engines, you can keep counting as many WS-xx as you want but if the engine's life is merely a few hundred hours then you may as well call your planes as pilot killing machines.