First of all, no one knows the "true cost" of any of this, yet, but we know it's expensive. To what extent are the Chinese labs being subsidized? Are they real businesses?
Second, the Chinese labs aren't some "super geniuses", while the American labs are full of clowns. As of today, like the past 3 years, American labs are SOTA. That might change, but let's not act like the American labs don't know what they are doing.
The idea that people are going to use cheaper models for cheaper work isn't some novel revelation, it's completely obvious. People are doing it already, eschewing Fable.