all smartphones and stb use ARM processors, which technology is from the west.What hardware designed in the West and manufactured in China, aside from (some) Western brands (even so, probably only artistic design carried out in the West, but engineering design are in China). Can you name few recognisable Chinese brand products designed in the West, especially engineering design: high speed railway and trains, urban trains, petrol cars and electric cars, aircraft, mobiphone...
This is only a wishful thinking from the West, and created by Western media. I work in enhineering and have seen the decline of a big Western company which have been closely working at big projects in Vietnam for last 20 years when they no longer do field works but focus on engineering design. Working far away and separate from production shops or construction sites will make the design (both artistic and engineering) unrealistic and eventually unusable.
I doubt even the western brand softwares are actually developed in the West, as the top quality workforce (in math) are East Asian. They may have outsourced this work too to China or Korea
smart tv capabilities use western software (android, linux)Certainly not today's TVs. You must be thinking about the cathode ray tubes. LEDs were invented in Japan in early 2000s. From then on both design and manufacturing come from Japan, Korea or China.
You can design and prototype must faster when you are near components. Whether it is tvs, computers, washing machines or cars you can design and make a working model far faster in China than anywhere else because the parts for everything are there.
It's funny because if something allow a atacker to take over the control of the device, it's this, and it's cheap to develop a own SO, but they prefer to be under the west control.