There was a lot of knowledge transferred and training as part of that. For what its worth we previously had trained our North American partners. China could definitely not make our equipment themselves at that point in time. We did retain some key technologies but most of it was moved over.
I don't see how anyone can deny that the Chinese got a lot of the know-how as part of the mass transfer of production to China. 90% of their manufacturing know-how is from the west.
If the point is that Sherline specifically today doesn't have any IP they might care about- sure. It's been copied/reverse engineered/"stolen" a long time ago. I don't know when the Chinese entered the hobbyist machining market but when they did I'm sure copying existing designs wasn't exactly a barrier, or stealing trade secrets, or ignoring patents.