This is the cost of complacency. They were ahead for so long then the likes of Roborock just left them in the dirt. I remember the first time I tried one of the Roborock devices, and until then I have been a long time Roomba user (like, 20 years). I just couldn’t believe how much better it was. And iRobot just stubbornly refused to iterate on their fundamental products.
It is complacency or is China just accelerating? It's not surprising that China wins in these things. Just go to Shenzhen. Hardware designers, parts, machines that make the parts, factories, etc. are all within driving distance. You can't compete unless you also have offices there, hire Chinese workers, compete in China. American companies need to start designing in China, not just made in China. Ford themselves said…
Not to mention the blatant corporate espionage. They may have some of their own innovations, and I’m sure there are plenty of smart people there who, despite being oppressed, still find joy in building things. But let’s not pretend this is all due to excellence.