I think we can take a look at history here to see an analogy.
I'm old enough to remember the cheap Japanese transistor radios that flooded North America in the sixties. There were innumerable other electronic items that came over as well. When one sad 'Japanese' one always meant 'cheap'. Until they got some experience and cash and started to upgrade. Now people look for items made in Japan and try not to get the ones made in Korea or other countries because the Japanese ones are the best. We may very well be seeing the same thing happening with China. We'll just have to wait and see.
Japan came up from the ashes, to borrow a well used phrase, of World War II and became a superpower economically. During the war their factories were pushed underground and were slowed up considerably and three quarters of their merchant shipping was sunk largely by submarines. China already has the same world leader status that Japan reached, too and it's only a matter of time before the quality gets there. China doesn't have to rebuild after a major world war and technology, via computers, has been and is readily available to them.
As for current Chinese made gear of big brands, they do a pretty good job of this for a street price of $550 USD and they have got my attention for that. The Chinese made Ibanez AM93 sports some features once only found on stuff close to a thousand dollars and guitars made in Korea and Japan for Ibanez just two years ago.
On this guitar, that's real quilted maple instead of photo flame stuff and the pickups are Custom 58s, among the best stock pickups in any guitar. I don't know if they wind their own 58s or if they just get it from Ibanez Japan. But if they are putting this guitar out and making their own pickups for this then it's astounding how far they have come in less than a decade. Japan took far longer to get up to primetime in moderately priced guitars suffering with unmentionable 1950s junk and some improved but still substandard gear all throughout the 1960s. It wasn't until the mid-1970s that the Japanese gear from the different companies got on par with everybody else.
But ten years ago in China, there weren't factories making guitars where some of the huge makers are right now and it will be fun to see the next five to ten years. China is going to shrug off their cheapo gear status much faster than Japan or Korea did.