I'm not sure why any of this is surprising. The US was perfectly fine letting China manufacture all the things. That manufacturing know-how leads to design know-how. The desire by US corporations to keep wages low or eliminate US labor entirely to use outsourced manufacturing leads to this.
It isn't just military hardware: it is products across entire industries. China is producing good ones, and even when they aren't, they're producing them at volumes the US could not dream of touching.