China has improved something in their production processes that I'm not sure the rest of the world has figured out. Within the last 2 years, I've noticed them knocking off SUBSTANTIALLY narrower-audience products. The counterfit reels discussed here is one example. The one more frustrating to me personally is they've gone from knocking off mass-market pocket knives that sell tens of thousands of units a year (say, Spyderco Paramilitary 2) to art/niche/limited run knives that sell, at absolute most, less than hundred or so a year (Spyderco Vallotton, Hungarian, Bradly, etc).
Given what it costs the rest of us to get tooled up to make something, it would seem to only be economically viable to knock off something that you believe you can sell a whole lot of. The fact that China is now making (honestly quite good) copies of very small market pieces suggests they've got some trick for making small runs more profitable.