That is your unsupported opinion. A lot more US companies that never had anything built in China have gone out of business for that very same reason. If you are claiming that some companies have trouble communicating with their Chinese suppliers? Yes, no doubt that risk exists.
The Yugo cars were for a while imported to the US. The company that made the car were in business prior to that and after that. They make money selling cars. They just couldn't make money selling them in the US.
Were it not for US regulations a car like that would probably sell for half of what it did and would continue to sell in the US market. And no, making the Yugo comply with US regulations certainly didn't make the Yugo more dependable, last longer or a better deal for the consumer. I didn't say anything like that. One could argue that the US regulations did pretty much the opposite, but the Yugo is still evidence there are plenty of people who would buy a cheap cars if they were available.
The regulations are designed primarily to make it difficult for cars like the Yugo in the US market. The Yugo is only evidence that the system works as designed. The Yugo actually sold quite well, but if you aren't making money on each car it doesn't matter how many sell and it didn't help that the US bombed their factory during the Clinton administration.
You can look a lot closer and see what cars they are making in Brazil or Mexico. Or you can go back a generation or two and see what the US was making. The model T Ford was a lot better suited to the roads and driving habits of the public back then.
One of the things you are overlooking is that government management has shaped the market more than it has shaped the cars. The car market would be much different without the massive infrastructure to support the automobile, and the free market would have never built that infrastructure. Without that infrastructure people would be satisfied to purchase cars that go only 40 mph and drive like trucks.
So is your thesis that the Chinese produce crap and the US government is what forces business to get their goods made in China?
That political power to decide also exists in the US. Case in point would be the Yugo. Another example - the government put the old Volkswagen bug out of business long before the Yugo.