Small cars are disappearing in the EU as well. E.g. Audi will discontinue (or have already discontinued) their A1 model (and it was the perfect little car).
Pre-COVID we got a new Leon ST — essentially a Golf estate/station wagon — for about a third off the list price: £13K instead of £20K (I know: those prices sound semi-mythical now).
On the other end you have Audi, whose premise seems to be: "So you want a VW, but you want to pay hugely over the odds for it? Certainly sir, step right this way."
E.g. Mercedes uses Renault engines in the less-fancy models, but most customers are kept in the dark about that.
Even very cheap cars like the “Dongfeng Box” have multiple airbags, emergency braking, lane keeping, etc, and safe to assume a lot of the components VW/Toyota use for these come from the same chinese suppliers.