I would agree that it was free market if the USA avionics industry had full access to market in China without the demand that goods and service be actually produced in China. Further, the lower level experience in engineering that you are getting for a dollar or two an hour would also be an excellent entry level engineering position for an American engineer. Does that dollar or two an hour count the write off of expenses for engineering development? Who will be doing the advanced avionics engineeriong in a few years?
If it is a free and fair market situation then there is no negative impact from my points. If it is not then you are taking tax dollars to subsidize foreign nations and their nationals.
The fact that you are employed and are presumably making money off this situation really should not be all that significant. Clearly you could be employed and making more money with a fully free market for American goods and services.
In short a free market wirks both ways. now if Chinese companies were subcontracting or contracting their major deveopment to your company without restrictionbs on what subcontractors you use then I would state we had a free market situation. so far all you have described is a flow of dollars jobs and engineering experience and expertise to China in return for scut work product at low cost. You have described this without teh requisite free access of American companies to sell their product without resrtictions.