That XTC has a frame that is made in Taiwan, thus increasing the price of the whole bike. Cycling has seen a revival over the last year or two, specs have gotten worse and prices have gone up.

It seems to be a problem, not just in China but worldwide that entry level mountain bikes are generally XC (cross country) machines. Supposedly light-weight at the cost of durability so that you can win cardiovascular type cycle races on dirt. The whole problem comes with any bike under around 8,000 RMB isn't really that light and the tires and forks just can't take a beating, cue punctures and leaky forks, creaky drive-trains all in the first year, pretty lame. The smart money would buy a DJ/4X, lasts for years, much more fun and usable over a range of disciplines. Sure an XC bike would be better to win a XC race, but you'd buy a 29 inch wheel carbon fiber machine if you were really serious about that.

A commonly available in China XC bike: (Giant ATX)
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What I think most riders with a modest budget would be better off riding in China: (Giant STP (Street, Trail, Park))
2012_Giant_STP.jpg

You might be able to special order an STP at a Giant shop or Tabao has a couple. There aren't many around as Chinese riders hate them because everyone knows the more gears and the lighter the weight the better the bike must be (yeah, right).