I think his point was that the Shenzhen stuff only rockets up like you say when you’re buying niche items.
For example, if you search for a good mixer, you’re going to get reputable brands at the top like KitchenAid, Cuisinart, etc. Conversely, when I went to buy a pull-up bar last year, there were only Shenzhen knockoffs because there are no big-time players in the pull-up bar industry.
There’s probably a nice parallel to be made between this subject and first-party and third-party games made for certain gaming consoles.