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If they keep QC high, this should not affect quality of the engine. The Chinese are capable of very good quality, just have to keep an eye on them.
The 650 will most likely go into a Zongshen branded bike, much like the RX3....an Adv bike, then morph into a standard version of same engine/frame. It's water cooled and looks very similar to the current NC250 lump. 650 is pretty large for the world market (read 3rd world) where even a 250 is considered large. Maybe they are thinking about expanding Europe and North America penetration. Rumor has it that this engine won't be on the street for a few years.Peter Y.