In the sentence
This means you have Western manufacturers sometimes showing up with the 'latest and best' from 1985,
"showing up with" means that the western manufacturers expose/reveal/offer/come up with obsolete technology because they are offered no intellectual property rights. 'Latest and best' from 1985 refers to the technology which was considered modern/advanced in 1985 but is obsolete as of now.
Partnering with Western equipment manufacturers under preconditions such as a requirement of Chinese manufacturing will add risk and ultimately not bring the most current technology, due to intellectual property concerns
The above paragraph elucidates that western companies shy away from offering the latest tech due to IP concerns.