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While it may be true in some rare instances, for the vast majority of products its more likely to be fantasy that exists only in stereotypes.
The truth is why American attempts to onshore manufacturing and make it even cheaper with automation have failed miserably. The truth is that Chinese manufacturing is as automated as is possible with cutting edge technology. They build cars in factory's that don't even have lighting until finished cars reach the quality control area. This is why the North American auto sector relies on crushing tariff's and outright import bans to force North Americans to buy North American autos. Without those, you could buy a Chinese car that's better than what you drive for half the price.
The factory cranking out the one-dollar-shoes Temu sells is likely entirely automated.
TEMU sells what was made with the LLM-ification of manufacturing.