I saw this happen in the US with the skateboard deck industry. In the eighties and nineties, all legitimate wooden skateboard decks were manufactured in woodshops located in North America. Sure, Chinese-made skateboards would show up in big-box retail stores, but they weren't taken seriously by serious skateboarders. They were junk for kids.
In the early 2000's, certain California-based vendors contracted their entire production of these boards to Chinese factories. Within just a couple of years, the margins forced the all the other mainstream deck vendors to follow suit. As it ended up, the companies in California now just design the pictures on the boards, purchase advertising, and promote the decks made by Chinese companies. Whereas previously, Chinese-made skateboards weren't accepted by the skateboard industry, the Chinese factories have co-opted the California industry members to promote and market their products.