Sherline, for example, specifies spindle nose runout of 0.0005 inch or less and spindle end play around 0.0002 inch or less, using two 20-mm ball bearings with adjustable preload. That’s only about 13 µm runout. A Chinese factory can absolutely manufacture that.
Manufacturers such as SIEG took conventional lathe architecture and mass-produced it.
There is nothing original going on there lots of copying