The point is that most people who will buy a $700 Chinese drone will buy a $1000 US drone if that's all they can get.
I am of the opinion that the US made a very serious mistake by opening up tariff-free trade with countries which do not have comparable labor and environmental safety laws. The Feds should have come up with reasonable estimates of what foreign manufacturing was saving by cheating that way, and charged them that amount of money to sell products in the US. Factories which wanted to avoid those tariffs could pay for, and submit to, an independent audit of their factories.
Instead we decided that it was fine for US manufacturing to compete on an "even" basis with nations who are fine with laborers losing fingers and/or getting paid slave wages, and manufacturers dumping their waste stream into a nearby river. We've paid a severe price for that misguided egalitarianism, and it's time to change course.