I don't think he is saying that quality is cheap but the cost of making an iPhone in China is cheaper but company charges the premium price tag for such products and it varies with the brands for sure.
Well, that part is true. China has somehow managed to open up to free enterprise, allowing large foreign producers to work there. As a result, China is home to dozens of factories run by large manufacturers, all of which benefit from direct access to China's fast-growing market. Many such factories are more efficient, more productive, and more competitive than their counterparts in the West. That's good news for jobs in China, but it's bad for the rest of the world, which can't compete on price or quality.
