At first they are profitable - too much so. Then the ma and pop operation can no longer mass produce enough in their cottage industry to keep up with demand. Pretty soon, every commerical store in the region, then country, wants the product. Only the biggies can manufacture in that quantity.
It's just another version of BigAg. Very sad. We should probably try to find a way to produce more of what we need for ourselves. That would be healthier and safer too. But that is really not practicable.
Whatever, try not to buy anything produced in China, especially meds and supplements.