If company A spends millions on research and development to produce a product, and sells it for a 20% margin to attempt to recoup its R&D and make a profit, and a Chinese company is like “oh cool, let’s copy it, sell it at half the price, but we get a 90% margin cos we have access to all the cheap labour and resources with no R&D overhead” the problem isn’t not being able to be competitive at 46% market share.
A) you just described the Open Source dilemma. One I've been dwelling on for some time with little in the way of suggestions.
B) while your narrative is popular, the idea that "Chinese just copy" is rapidly becoming obsolete. I bought a Chinese inverter last year that is cheaper, and has a lot more features than the "established US brand". Equally Roombas have lagged in some areas, despite the R&D investment. It's this lagging which is hurting the cause.