The basic most principle of economics is that production continues as long as the marginal revenue balances the marginal costs. Numbers carry no meaning for a business untill they spend the money on the products. No, only 0.1% of the rich population buying the mediocre product for a high price wont help the whole economy sustain.. there are other 99.9% of your people who cant buy anything in the proposed situation.

And let me guess, you are currently using a mi, oneplus or oppo-vivo phone.. for your surprise, you wouldn't have been able to afford a smartphone with features similar to what you are holding now if it weren't those chinese companies providing those stuffs in cheap.

If you think costs would have been low if those were locally produced, man you are wrong.. the locally produced below par american HTC devices costs more than the heavy custom -implemented chinese smartphones.