I look at it this way. The Jap firms do the R&D which cost money. They have to make their money back and do so by trying to sell their items at a price. Now to try to make more money from each part, they are getting things made in China (as everyone is). The Chinese manufacturers then sell any extra items they make as copies while still making the original part for the original Jap firm. So really, the parts are getting made in the same factory without the original Jap company stamp / sticker. The Chinese factories then sell the item at a cheap price compared to the Jap company because they didn't do all the development work and they are making money from the production of the item anyway.
It is really up to the person purchasing an item whether they pay the money. If the Jap company folds, there may be less R&D, but I believe that performance items will get designed and made. Companies may have to be a little smarter how they do business, but this is how the world is. If you really want to see how it works, look at the music industry.
