I'll have to disagree. China's a big country, and any generalization isn't going to be perfect, but they've earned their reputation for creating fakes and copies. Their wealthier class is relatively new and are not yet known to by savvy consumers.
I've no doubt that the Chinese are capable of producing quality instruments. Eastman is a great example of this. But Eastman sources its woods from the same international sources that western builders use (Africa, South America, etc.). They're not using Chinese woods, which is puzzling. Maybe there are Chinese-only makers of string instruments, but I doubt it's ukuleles. More like guitars, symphonic strings, or traditional Chinese instruments.
Modern China's strength is not in innovation, but in production. Eastman creates fine string instruments, but they're not breaking new ground. Anuenue, with all its recent popularity on UU, was born in Taiwan and its flagship ukes designed by a Japanese luthier. This wasn't for name recognition, it's doubtful they could easily find a comparable, highly skilled ukulele builder in China.
The ukulele is a relatively young instrument from the West, and for all its popularity, still a very niche one. With only a small part of the population having just become familiar with the instrument recently, it seems unlikely to me that China has ukulele building luthiers with the kind of skills and craftsmanship you see elsewhere, building custom ukuleles just for themselves. It's possible that there are builders here and there, but not to the degree found even nearby in neighboring countries.
China doesn't keep the best stuff for itself. China's industry is production and supply chain. They reverse-engineer and duplicate what's designed and innovated in other parts of the world. They produce cheap copies and their consumers are satisfied with knockoffs. Or if they want quality and/or designer goods, their nouveau riche import those things from other countries. It's not that they're incapable; it's that there's little reason to learn how. Creativity and innovation are lacking in China, not because of some deficiency in the people, but because there's very little incentive to create.