Its not what your doing wrong, its just a lack of detailed frame design going into Chinese bikes. Any other make of bike is not immune either. Why do you think the biggest aftermarket industry in the world next to engine building is frame and chassis building? To improve every aspect of the setup for the type of racing to be done.
How well do you think these 12" wheeled bikes very similar in size to a minimotard, handle on kart tracks?
The Metrakit Concept :: Metrakit :: Australian Mini GP series
A heck of a lot better than your 'vert I can assure you. If you look at them in detail and note the major differences in geometry I won't have to explain why.
Now I will give you a shortcut to getting your bike setup to be fast.
If you can get good level side on shots of your bike and one you would like to copy geometry from, then just whack them into a photoshopping program or even paint, and make them semi translucent and drag big lines through the fork centreline, swingarm centreline, and shock centreline. Also you can pretty accurately measure to scale in the program and determine and mark wheelbase, seatheight, handlebar height and rake etc.
For eg. to get a good starting point for my dirt bikes, I decided Honda may have had a good setup with latest crf 150. I modified a frame to exact same geometry and found the setup to be very good on a pitbike after getting the suspension set for the angles I copied. It took six months the first time to refine that setup. Now that bike looks the same as any other to most, but to ride is just a pleasure and its easy to go quick. Another thing you notice is that you can ride much longer without fatigue, no more monkey butt and things don't seem to break as often...these principles are nothing new. Minimotard is very young ATM and many guys are putting roadrubber on their dirtbikes and having a whirl, so it is easy to be competative in this climate. Wait till a few start to really setup their bikes well and noone will even be in the hunt unless you start with these basic mods.