My impression is that it tends to be way easier to create a lot of moving parts in software where physics isn't there to act as a guide. In essence, it's way easier to make shitty software organically than it is with hardware.
If your software fails, your robot might behave erratically. No problem, just revert to the last stable version and try again. OTOH if there's a mistake in the hardware spec, you will have to replace that $5000 sensor, or worse, your robot might electrocute someone.
End result is you can get away with shitty software, but you can't get away with shitty hardware.
What makes you think that most hardware made in China is designed elsewhere? To the best of my knowledge, the HUGE Chinese smartphone/tablet market is based on chips, boards, and software all designed there.
I think you you need to improve your knowledge then. Or provide a citation.