Guess like anywhere else, you get what you pay for. Both my best and worst tools are from China. But the cheap stuff is gonna be orders of magnitude more widespread, and both name- and no-name brands are more than willing to slap their labels on it if it'll make them a buck, not giving a crap about their reputation.
No more racist than "classic German engineering".
>but damn I've seen some rather, uhh, interesting product quality on some tools
So your experience supports the accuracy of the pejorative meaning of "Chinesium" but you don't say it because it's "racist". Got it.
Japanese products used to have a poor reputation. Through years of hard work, the reputation greatly improved. More recently, Korean products underwent the same. Perhaps there will be a time when "Chinesium" is a compliment, not an insult. But that will not occur until and unless Chinese manufacturers put in the same amount of hard work.