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Well, yeah... Xiaomi is a Chinese phone! Why do you think it's so cheap and more powerful?
Unless Fairphone also uses Chinese labor?
Plenty of other brands which aren't Chinese are both better and cheaper. Samsung, Apple, Google, Asus even.
Do they all use cheap Chinese labour? Sure. Do you actually think Fair phone doesn't? Even if they somehow completely avoid China for the whole supply chain, they will inevitably get cheap labour from somewhere - like Taiwan or Costa Rica. After all they are using standard Qualcomm parts, so that's going to be either TSMC in Taiwan or Samsung in China and Korea.
According to their own website their living wage bonus is only $2.63. It doesn't even say if that's per hour or per day.
Well, yikes!