You want reality? Have I been to China? Several times. I have ODM's there. If you specify features and performance specs (the normal process), your ODM will buy the cheapest parts they possibly can to produce the product that meets your performance specs. Period. Country of origin has nothing to do with it. Pick an ODM in any country and the same manufacturing process takes place - they will buy the cheapest parts possible - it's economic sense. If you want premium performance, then you specify exactly what parts will give you that performance and your ODM will buy those components (and charge you ) and they will be in your product. Again, same situation around the world. This China-bashing is getting a bit repetitive and tiring.
Your experience doesn't match mine. I lived and worked in China for about 5 years and have been working with Chinese companies since the late 80's. I have been in meetings where I've heard Chinese manufacturing company C-level execs talk amongst themselves (not knowing I spoke Chinese) about how they would say whatever it took to get a contract and they would "deal with reality later." I've seen it time and again, first hand, and I have a list of acquaintances as long as my arm (people who actually live and work in China) with similar experiences.
If you're Apple, Dell, or some big electronics conglomerate I'm sure the rules are very different (mostly because they are big enough to enforce meaningful financial penalties for not following the "rules"). They're also big enough to have their own QA staff *on site* to get timely reports on both quality and production snafus. You can also afford to hire a local "consultant" to bribe local officials and business owners with money/cars/girls/etc while denying that you're involved in foreign corruption. If you're a small-time operator occasionally ordering a run of a few hundred units of consumer electronics...good luck. Outsourcing software design to them on top of the hardware integration and manufacturing is downright foolish. Short of not paying them, you (the collective you) have zero levers to control the process. So as a consumer, if I'm stuck buying product from China, who do I want on my team if there are problems with my shiny new device? A big multi-national that can support the product on their own or a company with a no technical people who will call up their "Chinese partner" to deal with bugs? (that was a rhetorical question for the sarcasm impaired)
Does that mean every small company is going to get boned in China? No, but it is VERY common.
As far as "China bashing goes," I suggest you try living and working there for a while. In short, you're way off base. Corruption is rampant, business ethics are non-existent, and there is little relief in their court system should you try to enforce any contractual agreements with a local company.
Best,
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