Hmmm Paperclip... you and the other groups are being conned !!
What I suggest you do..
Before your group submits their work, register a
preliminary patent on it, but do not tell your supervisors. The cost will be minimal(speak to all your parents), and if he likes your design, name your price.
Register the patent in the US and EU - China copies anything, but locking the US and EU are priority markets.
What your supervisors are doing is 'blackmail' of some sort, as you (the group) should get compensation, as a redesign is effectively a new product patent.