Theres a difference between competing and being competitive. As I recall, the Chinese medal winners and record holders use or used FWB and Anshutz guns. Theres no Industry Brand gun that I've ever seen that would be competitive in world class competition.
Break-barrel rifles led the pack at all competition levels for many years before the advent of the precharge and SSP rifles. The Walther LGs and the Diana recoilless guns were and still are as accurate as any side- or under-lever gun, more so than most too.
Yes, there are European guns that are not top quality, but those lower end guns at the least are comparable to the best that the Chinese have to offer. I have yet to see a Chinese made airgun with quality that would come close to the better Euro guns like HW, Diana, Webley, FWb, etc.